What is new GL concept?
Following are the difference in the functionality of NEW GL over the Classic one.
1. Total table in Classic GL was GLT0 whereas in New GL FAGLFLEXT.
2. In classic GL you require Rconciliation Ledger to reconcile CO with FI whereas in New GL you
have option to define Real-time integration of CO with FI.
3. In Profit center accounting you have to mention default profit center for Balance sheet account
transaction 3KEH was used whereas in New GL it is FAGL3KEH. In transaction 3KEH account are
maintained at controlling area level whereas in new it is at company code level (FAGL3KEH
4. In new GL you have option for Segmental Reprting whereas in classic you don't.
5. In new GL you can maintain parrlel accounting through the use of Ledgers where in classic
Special Purpose Ledger was used.
6. In New GL Document Splitting functionality is provided which is not in Classic.
7. Cost of Sales accounting has different treatment in New GL over the Classic.
General Ledger Accounting (FI-GL) (New)
The central task of G/L accounting is to provide a comprehensive picture of external accounting and
accounts. Recording all business transactions (primary postings as well as settlements from internal
accounting) in a software system that is fully integrated with all the other operational areas of a
company ensures that the accounting data is always complete and accurate.
Beyond fulfilling the legal requirements, General Ledger Accounting also fulfills other requirements for
General Ledger Accounting allows you to perform parallel accounting by managing several
parallel ledgers for different accounting principles.
Integration of Legal and Management Reporting
In General Ledger Accounting, you can perform internal management reporting in parallel with
legal reporting. For this purpose, the Profit Center Accounting functions are integrated with
General Ledger Accounting. Furthermore, you can generate financial statements for any
dimension (such as profit center).
General Ledger Accounting supports the segment reports required by the accounting principles
IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted
Accounting Principles). For this purpose, General Ledger Accounting contains the Segment
Cost of Sales Accounting
You can perform cost of sales accounting in General Ledger Accounting. For this purpose,
General Ledger Accounting contains the Functional Area dimension.
General Ledger Accounting is integrated with all application components of the SAP System that
generate posting data of relevance to General Ledger Accounting:
Asset Accounting (FI-AA)
FI Accounts Receivable and Accounts Payable
Materials Management (MM)
Human Capital Management (HCM)
Treasury and Risk Management (TRM)
Travel Management (FI-TV)
Public Sector Management - Funds Management Government (PSM-FM)
When you activate the business function set Public Sector (EA-PS) and the global functions
Funds Management (PSM-FM), you obtain a separate set of tables containing the Public Sector
account assignments, such as fund and grant.
General Ledger Accounting comprises the following functions for entering and evaluating posting
Choice between group level or company level
Automatic and simultaneous posting of all subledger items in the appropriate general ledger
accounts (reconciliation accounts)
Simultaneous updating of the parallel general ledgers and of the cost accounting areas
Real-time evaluation of and reporting on current posting data, in the form of account displays,
financial statements with different balance sheet versions, and additional analyses.
In this way, General Ledger Accounting automatically serves as a complete record of all business
transactions. It is the central and up-to-date component for reporting. Individual transactions can be
checked at any time in real time by displaying the original documents, line items, and monthly debits
and credits at various levels such as:
Balance sheet/profit and loss evaluations
Objective of New GL
SAP has the following objectives behind the introduction of the New General Ledger:
Efficiently handle Financial Reporting, according to both local and international accounting principles
Facilitate increased convergence between financial and management accounting
Considerably accelerate your period-end closings
Flexibly perform reporting tasks based on data reconciled in real time
An unified accounting structure that combines individual ledgers, cost-of-sales, profit-center-accounting
& Consolidation-staging ledgers.
Advantages of New GL
Introduction and portrayal of new business models within a single solution, thus avoiding separate
ledgers like Cost of Sales Ledger, Profit Center Ledger, special purpose ledger etc.
Data is stored in a single totals table eliminating data redundancy.
No need for additional reconciliation activities during closing
Easy to make adjustments to business specific requirements, such as the introduction of customer fields
as part of flexible reporting.
Why use the NEW GL?
The following table gives the business requirements at the backend which prompts the finance department of the
comapny to go for NEW GL implementation.
S.N Business Requirements New GL Functionality
1 Reporting as per different GAAP Concept of multile ledgers- leading and non leading
2 Unified Mangement & legal reporting Profit Centre integrated with the New ledger
3 Requirement of segmental reporting(in line with US Segment can be defined as an enterprise element
4 Financial statement below company code level Document spilt functionality
5 Reporting as per cost of sales accounting Functional area included
Each one of these functionality is unique and elaborate and has the features ingrained to meet the different
requirements emerging for the external reporting purpose.
Concept of Ledger
A leading ledger is defined and additional ledgers are defined for parallel accounting or management reporting
by assigning different characteristic values and fiscal-year definitions
Additional ledgers can be defined - Leading Ledger & Non-leading ledgers are created and maintained, with only
one accounting entry.
The new general ledger uses the special-purpose ledger techniques to save total values.
All Company Codes are assigned to a Leading ledger for each client, which contains the group-valuation view.
Additional ledgers can be defined for each company code.
Additional ledgers can be used for parallel accounting or management reporting by assigning different
characteristic values and fiscal-year definitions.
For general-ledger account postings that have a specified cost center, the system always reconciles the profit
center and general-ledger account simultaneously, since the data is stored in the same table.
Two views of the new General Ledger:
Ø Regular entry view &
Ø General-Ledger view
Real time integration
Integration with Controlling
Transfer of cross-entity controlling postings to the new GL in real time.
Integration with Asset Accounting
Depreciation postings are done to all the ledgers, with the concept of delta depreciation.
Integration with Consolidation
Transfer of financial data to EC-CS, real time, as Business partners, Transaction types are
defined at the time of GL Posting itself.
Extract / Transfer of data from GL to BI / CS.
Fast period end closing
Elimination of following activities
Maintenance & use of Reconciliation Ledger
Balance Sheet adjustment / P & L Adjustment
Maintenance & use of Special Purpose ledger
Segmental reporting is also available.
Different ledgers are available to freely define management reporting too
IAS/IFRS/US GAAP requires Segmental reporting.
Segment is provided in addition to Business area / Profit center.
It is one of the standard account assignment object available for running analyses of objects below the
company code level.
The objective is to give a detailed look at the various business activities (markets / products) at a broad
Parallel accounting can be done using the ledger approach instead as an alternative to the account
No additional account assignments are required as all account assignment components are defined as
Scenarios for each ledger.
Document splitting means the document is split according to the proportions of the account assignments in the
expense or revenue lines of the original document. Examples: Cash discounts and realized exchange rate
differences are split according to the source document.
Document-splitting is built at 2 technical points:
Document creation - The controlling functions in the SAP are updated accordingly and
reconciled with the general-ledger accounting information
Accounting interface -
Account assignment projection - Account assignment are copied from base rows to
Inheritance - Subsequent process of business transaction such as clearing.
It is a tool for determining missing account assignments according to cause in common accounting
processes in SAP software (invoices, payments or clearing)
It applies account-assignment information to non-assigned accounts according to assignment rules set
in the customizing area.
The functionality can help one to create balance sheets for entities that exist beyond the scope of the
Example: Creation of balance sheets at the segment or profit-center level or balance sheets based on company-
specific or industry-specific entities
Three new tables in the new general ledger handle totals, store general-ledger and specific line items, and
calculate valuations for year-end closings in parallel ledgers
Two new tables (FAGLFLEXA & FAGLFLEXP) store the ledger-specific line items (Actual & Planned) & contain
additional information for use in the entry view. The tables help in updating different characteristics and
document splitting information, different period shifts, and different currencies in specific ledgers for individual
documents. Helps in preparing reports for specific dimensions at item level.
The third table (BSEG_ADD) contains documents that are posted in connection with valuations for year-end
closing in selected parallel ledgers. However, these documents are inapplicable if one do not use parallel
accounting or use the accounting approach to portray parallel accounting.
In addition to the three tables, own table can be defined using FAGLFLEXT as template
The new totals table contains additional standard fields for storing totals. This standard table can activate
support for many scenarios by customizing the software. It supports Segment Reporting, Profit-Center updating,
Cost-of-Sales accounting, Cost-center updating, Preparation for consolidation and Business-area updating