Document Splitting in SAP new GL #2 Architecture of SAP ECC new GL

Document Splitting in SAP new GL #2 Architecture of SAP ECC new GL

Overview

In this blog, I will provide information on the table and ledger structure of new GL in SAP. This will help elaborate the concepts of Document Splitting and other features of new GL.

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.

 

Document Splitting in New GL in SAP - New GL in SAP Table architecture

newGL Table Architecture

 

“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.

Ledgers in new GL

newGL Leading Ledger and 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 in New GL in SAP - Ledger in new GL

Example of posting to leading and non-leading ledgers

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.

Ledger Assignment to Ledger Group in new GL SAP

Ledger assignment to Ledger Group


In the posting below, the transaction will post to all ledgers. The document was posted with the field Ledger Group as blank:

Document Splitting in New GL in SAP - Document posted to all Ledgers

Posting to all ledgers

 

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.

Document Splitting in New GL in SAP - Document posted to specific Ledgers

Posting to non-leading ledger only

 

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.

Document Splitting in New GL in SAP - “Scenarios” that permit Document Splitting

Scenarios in newGL

 

Conclusion

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.

 

Please Share

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

Document splitting in New GL in SAP

Index of my blogs on Document Splitting in new GL in SAP ECC

Overview of new GL Document Splitting Process

Architecture of SAP new GL

The Design driving the new GL Document Splitting process

SAP delivered pre-configuration for document splitting in SAP new GL

The semantics of SAP new GL document splitting process

Set up Zero-balancing for SAP new GL

Customise Document Splitting rules

Use Constants for Nonassigned Processes in SAP new GL

Customise cross company code postings for document splitting

Document Splitting in Cross company code vendor payment

Can SAP ECC newGL replace your existing Special Ledger?

 

_____________________________________________________________________________________________________________________________

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.

View Rajesh Shanbhag's profile on LinkedIn

 

Comments

  1. Having read this, can you confirm whether the number of active cost centre impacts on the document splitting performance, as advice sort previously indicates that having more than around 1,000 cost centre will seriously impact on the doucment splitting and system performance. Is it the number of cost centres that impacts on the systems, the number of transactions or one to one links with the profit centres?

    • Hi Steven
      There are performance issues in some cases. I believe, SAP has worked solutions for some. Nevertheless, performance needs monitoring especially when the solution is newly implemented. During my previous implementation, we had slower performance during data conversion from old SAP to SAP ECC (not migration but re-implementation). Generally, slow performance might be noticeable in the generation of financial documents containing large number of line items and
      impacting several cost centres / profit centres. The system will not only perform split but will also try and self-balance the document. This scenario applies (for example) to inbound interfaces or during data conversion during system implementation. The inbound interfaces should be structured to send data by smaller set of cost objects.

      Custom program that post entries with large number of line items or that post large number of financial documents are suspect for performance.

      SAP has OSS notes to handle some specific performance issues:
      OSS note 1158017 Recommends buffering of specific tables T8G20, T8G21, T8G21A, T8G22, T8G30B
      OSS note 1009067 Correction for performance issues with large documents

      Hope this helps. I would like to hear experiences from other projects on performance of document splitting.

      Also it is a good idea to perform stress testing during implementation phase using HP Loadrunner. That will highlight any problems early.

      Regards

      Rajesh

  2. Hi, I think you have done a great job of explaning the concept , I am working in a re-implementation project with the org structure as one ccode and multiple proftit centers , earleir these prctrs were company codes , can you please advise the cons of this org structure also could you please explain the impact of newgl to other cross functional modules like , SD & MM , how in turn those accounting entries would look iike , if you have certain documents and some user manual explaining all these scenarios please email it to me aryanfida@gmail.com… looking forward for your reply… thankyou so much .

    • Hi Aryan
      Good to hear you found the blog useful Do visit my slideshare to view the slides related to document splitting at http://www.slideshare.net/rshanbhag/document-splitting-in-new-gl-in-sap.
      Generally speaking, use the following criteria for company code vs profit centre:
      a. Company codes should represent legal registered entities; any representation of business within a company code should be a profit centre or a profit centre group. The reason to keep company code structure lean is because maintaining company code on regular basis is a huge task; also any small changes to config would manifest disproportionately with a large company code structure
      b. Most organisation structures and global settings in FI MM SD are assigned to company code. However this should not be a driver to decide whether to set up a business as a company code.
      c. Requirement of full balance sheet – with newGL Profit Centre, you can get a full and a balanced Balance sheet and P&L. So that removes another justification to represent a profit centre as a company code.
      d. Roles and accesses: If you activate K_PCA object, you can assign security at profit centre hierarchy level. Hence you could have a profit centre hierarchy node per business, and then assign that node to roles and users such that a user who has access to one profit centre hierarchy (or a business) does not have access to profit centre hierarchy (or business) that is not assigned to him.

      So the wisdom is to keep the company code structure lean.

      NewGL does not have any significant impact on other modules. Remember that newGL happens in the “background” and there is no process that needs to run regularly to make it happen. Some features of new GL and impact on other modules:
      a. Document Splitting: occurs when a financial document is created. Hence, logistics processes are not directly impacted with this. Any “manipulation” of profit centre derivation should be handled within FI rather than modify other core processes.
      b. CO – FI reconciliation (not covered in my blogs as yet): This allows automatic “reverse” posting from CO to FI for cross-scenario (scenario = company code, profit centre etc) into Financial
      c. Replaces Special Ledger: Again this feature is “FI centric”

      I did face some issues with currency amounts being in sync with (newGL + Material Ledger + multiple valuation views + multiple currencies) scenario. I will not cover that here.

      Regards

      Rajesh Shanbhag

  3. Hi, I think you have done a great job of explaning the concept , I am working in a re-implementation project with FI org structure as one company code and multiple profit centers earlier this profit centers were company codes could you please advise the cons of this , also could you please explain the impact of new gl over other cross functional modules especially SD and MM if you have any document or usermanul explaining all these scenarios could you please email me @ aryanfida@gmail.com

    • Aryan
      I think this message has come second time. I have responded to the first message.
      Let me know if you want more info.

      Rajesh

  4. Rajesh,

    Quick question on future of FI-SPL. With New GL, do you think there won’t be any future for Spl purpose ledger? Can we achieve everything that SPL can offer using New GL?

    I am exploring options to provide ledger under cash basis accounting. (SAP has already provided a solution for public sector SAP CBA). However to implement similar functionality for non-public sector, there will be several challenges with New GL. For ex: As per SAP standard, postings with subledger or G/L accounts managed on an open item basis always affect all ledgers.

    So as per standard functionality, we can’t prevent these postings going into Cash ledger where as per cash basis accounting requires only cash payments/receipts and other P&L related postings.

    With that restriction, it would be a hurdle to control automatic entries going into parallel ledger (without a custom enhancement). In this situation, i think FI-SL can provide better solution. Do you agree with that idea?

    Let me know your thoughts.

    Thanks
    Krishna

    • Hi Krishna

      I think it is premature to write-off FI-SPL. SAP has not been able to merge their Special Ledgers (Joint Venture Accounting JVA as an example) into new GL – I think that is because JVA has features like cutback, cash call etc that cannot easily be replicated into newGL without substantially changing the design and code of newGL. I have not had a need to implement FI-SPL at customer sites where newGL was implemented. But I would not commit a statement that “FI-SPL is not longer required”. It will depend on requirement of customers.

      I am not sure how your customer defines “Cash Ledger”, but I would assume any accrual posting is not allowed (sales invoice, vendor invoice etc). You are right that we cannot prevent postings into parallel ledgers. FI-SPL can be better utilised here using activities and field movement to control what data populates into FI-SPL ledgers.

      Alternatively, you could use parallel ledgers in newGL. At month end, automate the posting of a “reversal” entry to reverse out all accrual outstanding entries (using open item customer, vendor tables). But this could get tricky.

      SAP OSS note 779251 talks of an “account” solution; which, in my opinion, is less a solution, more a “problem”.

      If you intend to prevent certain postings into parallel ledger, I agree that FI-SPL would suit the requirement better.

      Regards

      Rajesh Shanbhag

  5. Hello,
    just wondering-is there possibility in table FAGLFLEXA to be updated statistical postings as well.
    Example -I have posting to cost center and statistical internal order. In this case only cost center is updated in FAGLFLEXA. Internal order is not updated. At teh same time I need Internal order for reporting purposes.
    What is your suggestion in this case? thanks

    • Hi Svetlina

      I do not think you can get statistical postings in FAGLFLEXA. If Order is not assigned to the ledger as a scenario in newGL, then it will not post to Order in FAGLFLEXA. Remember that FAGLFLEXA is similar to the old BKPF+BSEG except that it has additional fields for scenarios selected by you+ technical fields for document split.
      You will have to go to CO tables COBK COEP to extract this data.
      I do not think I have a better solution for you, unless any reader might want to respond with a solution

      Regards

      Rajesh

  6. Hi Rajesh Shanbhag,

    Thank you for the information and clear description.
    I have a query regarding the data that can be made available after posting in multiledgers.

    Is it possible to view in the account extract / dump, which ledger has been used? if so which field needs to be selected before the extract is prepared?

    Looking forward to your reply per email,
    Abha Doshi

    • Hi Abha

      Field RLDNR (Data Element FAGL-RLDNR) will show which ledger is used.
      Which fields are to be selected for extract depends on what you are trying to extract.
      Please refer to blog for the set of tables you will have to read to extract information

      Rajesh

  7. The business is running with new gl activated, now they wanted to activate document splitting to generate FS profit center wise. Now the situation is to go without Migration cockpit. Assuming the fiscal year is January to December and client wants to go live October 2013.

    A.What could be the Pros and Cons with & without migration cockpit?.

    B. Is it possible to update profit center wise September 2013 month end process (Transfer B/S Items to PCA)as done in classic GL approach for the following

    1. Asset balances & ADP balances.

    2. Receivables & Payables.

    3. Balance Sheet accounts involve cash and GL accounts.

    4. Inventory balances.

    I would move the Document splitting customisation to Production from October 1 2013. Here i would be activating profit center as a required field.

    So when i generate FS on november 2013 i could see profit centerwise balances. (This might have some inconsistencies, i agree, but over a time period should be able to generate accurately).

  8. Hi Rajesh

    Thank you for your wonderful blog and for sharing your knowledge and expertise with us. I am going to spend a lot of time learning from here. I had also written to you earlier asking for help in SAP-JVA. I know that you had worked with it a long time back. Once, I get the grasp of this subject, I should be doing better with SAP-JVA.

    Cecil

  9. Thank you so much Rajesh to share all this interesting and valuable information with us.

    It helps me a lot in the understanding of New GL.

    Marie

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