In order to be able to switch to SAP S/4HANA, the new general ledger from SAP must be introduced. Compared to the classic ledger, the New General Ledger offers various new functions and improvements.
The following components of the classic general ledger are combined in the new general ledger: FI Classic, UKV Ledger, EC-PCA, Special Ledger, EC-PCA, Special Ledger, Consolidation Ledger. And the previous totals table GLT0 will be replaced by the new totals table FLAGLEXT.
The general ledger is the central element of financial accounting. It consists of general ledger accounts, is used to record all financial transactions and forms the basis for the balance sheet. General ledgers, subledgers and profit center accounts are used to comply with legal and internal requirements. An automatic reconciliation between the main and subledgers has not yet taken place. This has to be done manually for each deal.
The new general ledger has been available to SAP users since the introduction of SAP ERP 6.0. It enables closer integration of internal and external accounting. The period-end closing can thus be significantly accelerated.
In SAP S/4 HANA, the new general ledger is an integral part of accounting.
The new general ledger has the document splitting functionality. This is intended to ensure that all documents can be divided according to segments or profit centers in such a way that complete balance sheets and profit and loss accounts can be created at this level.
Previously, financial accounting and controlling were separate areas. With the Universal Ledger, SAP combines these areas of internal and external accounting. Because both areas were seen as independent of each other for a long time, there were separate database tables for each area.
This has completely changed with the new general ledger on S/4 HANA (Universal Ledger). All relevant data and processes are now in just one table, the ACDOCA. From there, they are made available to financial accounting, controlling, asset accounting and the material ledger.
The combination of financial accounting and controlling brings considerable advantages. On the one hand, there is no time-consuming reconciliation process and, on the other hand, redundant data is largely avoided because the individual items are only recorded once.
Two documents for the postings are still created in the new general ledger, one for FI and one for CO. In the Universal Ledger, these documents are completely combined in one table. And this merging not only affects CO documents, but also material documents, for example. This drastically reduces redundant data storage in the system.
The range of functions has been increased. Each company code is multi-currency capable in the new general ledger. This means that the local currency is used as the company code currency, and the euro or US dollar is used as the group currency. The values are automatically converted to the group currency in real time.
Data storage in the Universal Journal has the following advantages:
The new general ledger offers the option of depicting parallel accounting using parallel ledgers. Prefixes are assigned for the respective accounts. 0 is used for joint accounts, 1 for HGB and 2 for IFRS accounts.
In parallel ledgers, there is a leading ledger. This usually corresponds to the leading accounting regulation (local GAAP or HGB or IFRS). The other ledgers (non-leading ledgers) can be represented with different accounting principles. With this concept, the following advantages are achieved:
In addition, the ledgers can be expanded. In principle, all ledgers are delivered as base ledgers. These can be supplemented as extension ledgers.
To reconcile external with internal accounting; Transfer postings often had to be made for period-end closing in the classic general ledger at the end of the period. An example:
Each business transaction produces several documents. With a purchasing document, a document is created in FI and in CO. Although this data is linked, it is saved in each module as a separate document. If the costs in CO are now distributed to different cost centers, then this is not passed on directly to FI. This information is temporarily stored in a reconciliation ledger. At the end of the period, coordination with FI then takes place. A reconciliation log can be activated in the new general ledger, which queries in real time whether the document should be posted in FI.
Another example:
If the invoice amount is not paid in full, for example due to a cash discount, follow-up costs arise. If a customer pays an invoice of EUR 1,000 with a 3% discount, the proceeds are reduced by EUR 30. That has to be adjusted in the CO. In the classic general ledger, this was previously done with a clearing posting at the end of the period with an additional charge to the balance sheet or profit and loss account. In the new general ledger, the online distribution of the follow-up costs is linked to the document split. The original document thus contains information on how a reduction in CO is to be carried out in the event of a cash discount being deducted.
The fast close replaces many reconciliation postings at the end of the period and the closing work is significantly accelerated.
Internal and external accounting are growing together in the “New General Ledger”. Functions such as document splitting and fast close at the end of the period accelerate working in the system. And thanks to the new “Segment” feature, more detailed reporting is possible.
