Blogs on Document Splitting
In my series of blogs on newGL and document splitting, I intend to explain and elaborate the concepts behind newGL/ Document Splitting and highlight using examples how newGL functionalities including document splitting can be achieved for various complex business processes. I use Profit Centre as a “scenario” to explain the functionalities; however all processes that apply to Profit Centre also apply to the other scenarios (Segment, Business Area).
To identify the series of blog, I have categorised the blogs under SAP > newGL. If you have questions/ comments/ suggestions, please send me your comments in the form below. Sharing your questions and experience using comment box below will help other readers to gain additional knowledge involved in this functionality.
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Table Architecture of Ledger
BKPF & BSEG remain the FI document header and FI document line item tables. These are the same as in Classic GL and do not contain any additional information from the features of new GL (like Document Splitting). FAGLFLEXT and FAGLFLEXA is the ledger specific total and line item table respectively. FAGLFLEXT and FAGLFLEXA have split document information. If a document is posted to a ledger other than a leading ledger, that document is also updated in table BSEG_ADD.
“From the technical standpoint, New General Ledger Accounting offers the following advantages over classic General Ledger Accounting:
- The introduction and portrayal of the business model now occurs in just one application component. This means that there is no further need for the cost of sales ledger, the special purpose ledgers in FI-SL, the reconciliation ledger, and the profit center ledger.
- Users only have to be familiar with the interface and functions of one component. Users already familiar with the R/3 System require very little training, if any.
- The data is only stored once in the system (in just one totals table), thereby eliminating data redundancy.
- No need for additional reconciliation activities during closing.
Easier to make adjustments to business-specific requirements (such as the inclusion of customer fields as part of flexible reporting).” (SAP publication “The Basic Architecture of New General Ledger Accounting in mySAP ERP”)
Ledger in new GL in SAP ECC
New GL allows customers to maintain multiple (or parallel) ledgers. Before the SAP ECC version, users had to create multiple Special Purpose Ledgers (FI-SL) to report the same financial information for different business requirements. For example, if a SAP customer wanted to report the same information with different fiscal periods (one for tax and one for shareholders) or with different accounting standards (GAAP and IAS), they could use the Main Ledger (i.e. Ledger 0L) for one requirement and create a Special Purpose Ledger for the other requirement.
With new GL, users can maintain (and without the need to create a Special Purpose Ledger)
- One leading ledger that reflects the same accounting principles as which is used to generate consolidated financial statements; this ledger is integrated with all sub-ledgers
- Multiple non-leading ledgers could be used to manage business requirements that cannot be managed in the leading ledger. Some examples are requirement to maintain parallel accounting (accounting for tax, GAAP) or maintaining books in a different fiscal period compared to leading ledger.
Below is an example of a leading ledger (Ledger 0L) and multiple parallel ledgers.
If ledger is not manually entered on the financial document, then the document will post to leading ledger and to all non-leading ledgers. If ledger is manually entered on the financial document, then the document will only post to that ledger.
Document Splitting is not supported for ledger-specific postings (i.e. postings where ledger is manually entered). Ledger specific postings are G/L account postings or adjustment postings in connection with period-end closing when multiple ledgers are used to portray parallel accounting. For example, if non-leading ledger portrays accounts as per GAAP (and leading ledger portrays accounts as per IAS), then any adjustment required to the accounts to reflect compliance to GAAP are posted in non-leading ledger only.
Ledger Group & Representative Ledger
You can group ledgers into a ledger group. This will simplify maintenance tasks for each ledger and ensure postings are made to all ledgers of a ledger group simultaneously.
A ledger group with the same name is created when a new ledger is defined.
If you assign more than one ledger to a ledger group, you need to define one of the ledgers as a representative ledger.
If the ledger group has a leading ledger, the leading ledger must be designated as the representative ledger.
A representative ledger is used to determine posting period during posting and to check if the posting period is open.
- If posting period of representative ledger is closed, then postings to that period will not be allowed to any ledger in that ledger group. If posting period of representative ledger is open, then postings to that period will be allowed to all ledgers in that ledger group, even though the posting periods of the other ledgers are closed. Alternatively, you can specify that the system performs the postings using the posting periods of the non-representative ledgers.
- During posting, the system uses the fiscal year variant of the company code to check whether the selection of representative ledger was correct:
- If all ledgers in the ledger group have a different fiscal year variant to that of the company code, you can designate any ledger as the representative ledger.
- If one of the ledgers in the ledger group has the same fiscal year variant as that of the company code, you must designate that ledger as the representative ledger.
This means you may not be able to use the same ledger group for all company codes.
In the posting below, the transaction will post to all ledgers. The document was posted with the field Ledger Group as blank:
Ledger specific adjustments can be made by specifying ledger group like in the transaction below. The transaction below will only post to ledgers in Ledger Group L5. Transaction Code FB50L.
Scenarios in Ledger
Document Splitting in NewGL will only process fields listed in scenarios that are assigned to the ledger. SAP delivers 6 standard scenarios in SAP ECC as below. You cannot define your own scenarios.
You should activate scenarios for fields that need the financial document to be split.
With new GL, the need to create Special Purpose Ledgers should be revisited. If you are upgrading to SAP ECC, review the need to migrate Special Purpose Ledgers and whether those requirements can be incorporated in newGL as additional/ parallel ledgers. Requirements for Special Purpose Ledgers can be met with non-leading ledgers; thereby reducing the maintenance of additional ledgers and eliminating the period end processes that would delay close of books.
Once you understand the functional and technical architecture of new GL, it is easier to understand the process behind the Document Splitting process. That will be the topic of my next blog.
I hope this blog has helped you understand the architecture and table structure behind newGL. Please do leave your comments below whether this article was helpful; and whether you have any suggestions/ comments; or if you would like to share your experience with document splitting.
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View my presentation on Slideshare
Index of my blogs on Document Splitting in new GL in SAP ECC
Rajesh has implemented new GL and Document Splitting for several customers. Rajesh has 12 years experience implementing SAP / IT / BPM Finance solutions for several customers globally; he also has 7 years experience working in the business in Finance and Accounting functions. His business process knowledge combined with his IT expertise enables him to provide his customers with best-of-breed advice on business process / IT implementations.