Solutions Tailored to Fit Your Needs

New Ledger Additions & Migration Roamap

Johannes Le Roux
leroux@vortexconsulting.net Tel: 585 317 9234

What Well Cover

Benefits of Upgrading to MySAP ECC New G/L Improvements from the Classic General ledger New Ledger Migration

Benefits of Upgrading to MySAP ECC

Functional Benefits.
The main Focus upgrading to MySAP is on NEW G/L
Less Manual Reconciliation Produce balanced financial statement by dimension Improved Consolidate Financial reporting

Corporate Performance Management

Enhancement in Business planning, Consolidation, and Performance management.

Audit Information System

AIS supports internal and external audits Includes Document tracing, Account analysis and enquiries

Benefits of Upgrading to MySAP ECC

Functional Benefits.
Financial supply change management
Better visibility and control over cash-related processing
Credit Management Biller Direct Collections Management Dispute Management In-House Cash Treasury & Risk Management

Integration with Controlling

Integration with controlling enables the transfer of cross-entity controlling postings to the new general ledger in real time

Benefits of Upgrading to MySAP ECC

Other Benefits.
Technical
NetWeaver Based platform Greater Flexible and integration Less Interface programs to legacy due to XI Integration capabilities Enhance integration of analytical functions through the NetWeaver BI Components. Faster closing Improved Reporting - Dashboard capabilities Similar User Interface - Do not require a lot of end User training

Business Process

New G/L Improvements

What Well Cover

Architecture Parallel Ledgers Profit Center Accounting Segment Reporting Document Splitting Real time Integration to CO

New G/L Improvements Architecture

R/3 Classic Ledger
FI Classic (Legal Requirements)
Cost of Sales Accounting Ledger

R/3 New Ledger

Unified World
Legal Requirements Intl. Accounting standards Management Reporting Segment Reporting Parallel sets of books Balance Books By Dimension Extendable by Dimension Transaction Reduction Account reduction Compliance and Transparency Fast Close

Reconciliation Ledger

EC-PCA (Management and Segment Reporting) Special Ledger Functional Area and Customer Specific Reporting (Splitting)

Consolidation Ledger

Extended Fields
More fields available in the NEW G/L (Table FAGFLEXT) than in the Classic G/L (Total table GLT0)
Classic G/L Totals TABLE GLT0
Field BURKS RYEAR RACCT RBUSA Short Description Company Code Fiscal Year Account Number Business Area

New General Ledger TABLE FAGFLEXT

Field BURKS RYEAR RACCT RBUSA COST_ELEM RCNTR PRCTR SEGMENT Short Description Company Code Fiscal Year Account Number Business Area Cost Element Cost Center Profit Center Segment

Extended Fields
Totals Tables Extended Extended Data Structure Extended Additional field that can be Added Customer Specific Industry Specific Account Assignment Block FI G/L Account Postings MM Inventory MM Purchasing

New G/L Improvements Architecture

Flexibility and Consolidation of Module and data in the New ledger gives the perception that the system change dramatically for the users. How does the Architecture affect the users?
With the addition of the new functionality there is only minor changes to the general view to the user and reporting Changes to entry screen to allow for the consolidation of transaction and Report. Ledger Specific postings To support Accounting Standards

New G/L Improvements Parallel Ledger

Parallel Ledger
No Ledger Specified Ledger Specified Local Ledger 0A

Leading Ledger - 0L
Accounting Standard can not Change LATER.

GAAP

Company 1

Local - GAAP

Futures in Parallel Ledger

Separate ledger for each accounting standard Multiple Valuations Based on Company Code Parallel valuation Display Specific Postings to Ledgers Based on accounting standard Statements By Accounting Standard Requirements in Public Sector Legal requirement of financial statements for fund and function Balancing entries at lower levels, especially in the area of research (funding).
Local Ledger 0B

Company 2

IAS
Company 3 Local Ledger 0C

IFRS
Local Ledger 0D

IASB

Fast Close

New G/L Improvements Profit Center Accounting

R/3 Classic Ledger
EC-PCA (Management and Segment Reporting)

R/3 New Ledger

Profit Center Accounting (Management and Segment Reporting)

EC-PCA
Own Table structure GLPCT&GLPCA Transfer Balance Sheet items Not Realtime
Transfer Material Stocks - 1KEH Transfer Assets - 1KEI Transfer WIP - 1KEJ Transfer Payables/Receivables - 1KEK

EC-PCA
No data updates to GLPCT&GLPCA Tables All PCA data in Tables FAGFLEXT Transfer Balance Sheet items Real-time
Material Stocks Assets WIP Payables/Receivables

Profit Center reporting no t in G/L Segment Reporting not in G/L Statements not NEW G/L ( Balance Sheet and P&L by Profit center) Allocation done in PCA

Profit Center reporting no t in NEW G/L Segment Reporting not in NEW G/L Statements in NEW G/L ( Balance Sheet and P&L by Profit center) Reporting By Ledger, by Profit Center. Allocation done in NEW G/L

Fast Close

New G/L Improvements Segment Reporting

Segment reporting in Old Classic Ledger
Did not Support all Accounting Standards Fragmentation Problems Profit Center and Business Area was used to report below Company Code level Reconciliation required Data Not Real time

Segment reporting NEW G/L

Accounting Standards GAAP & IAS Segment fields Segments is used to report below Company Code Profit Center is used as a level below Segment Reconciliation Real-time Data Real -time

Segment reporting can Span over Marketing, Divisions or Product

Profit Center Segment Manufacturing
Motorbike Manufacturing

Cost Center

Profit Center
Motor Vehicle

Internal order
Trade Fair

Segment Services

Profit Center
Repair

Material Master
Material

New G/L Improvements Document Splitting

Document Splitting in Classic G/L
Balance sheet with Zero Balances Company code Business Area Profit Center Balance sheets Balances not always Zero Splitting process complex

Document Splitting in New G/L

Balance sheet with Zero Balances Company code Segment Profit center Why use splitting? It will give you Transparency and detail insight in to different Business segments.

Splitting Vendor Invoice In NEW GL Entry View

PK Account PrCtr CCtr Amount
$500.00 $1000.00 $1500.00 40 6XXXXX PC01 CC01 40 6XXXXX PC02 CC02 31 2XXXXX Document Number 40001 40 40 31 31 6XXXXX 6XXXXX 2XXXXX 2XXXXX

G/L View
PK Account PrCtr
PC01 PC02 PC01 PC02

CCtr
CC01 CC02

Amount
$500.00 $1000.00 $500.00 $1500.00

Totals Table

Posting

Single item Doc 40001

Posting

Split Info Table

New G/L Improvements Real time Integration to CO

Classic G/L Reconciliation Ledger
No Real time Integration Monthly closing required External reporting not real time FI and CO not Reconciled during the month Decision make delayed

NEW G/L Reconciliation Ledger

Real time Integration No Monthly closing required External reporting real time FI and CO Reconciled during the month Decision make Real-Time

Financial accounting
Expense Account 6xxx

Controlling
Expense Account 6xxx1

Fast Close

200

Debit FI account

If cost Element

200

100

PrCtr - PC01

PrCtr - PC01

Reconciliation account

Expense Account 9xxx1

100

100

100

Reposting in CO 2 to Different: Segment Profit Center Business Area Functional Area Company Code

PrCtr - PC02

PrCtr - PC01

PrCtr - PC02

New G/L Improvements

What is Fast Close.

The New General Ledger simplifies and accelerated period-end closings.
Document splitting, the data is real-time so reporting is available from the time of posting. Zero balance setting for the corresponding characteristics (segment, profit center, and customer fields) allow real-time data Reconciliation between controlling functions and the new No Closing process required for cross-entity controlling postings (such as transfer postings for costs from one cost center or profit center to another, either manually or with allocations) All ledgers I in sink and do not require any manual adjustment to support accounting standard.

Migration to New G/L

Why migrate to New G/L. The answer is simple !!

Do you want to close your book FASTER? Do you need better drilldown reporting? Do you need real-time reconciliation between G/L and Controlling? Do you need consolidate statements across multiple legal entities? Do you want to report in multiple accounting standards? Do you want to report in Multiple Currencies? Do you need Zero Balanced books by Business segments?

If you answer is yes to 50% of these questions then YES!! you need to migrate to New G/L

Migration to New G/L

Upgrade Project SAP R/3 mySAP ERP
Complete Upgrade before starting Migration project

New Ledger Implementation/Migration Phase 0 Planning & Blueprint New G/L

Planning of migration Analyze business Define Customizing Define Processes change Define document splitting if needed

Phase1 Customize and Test New G/L

Year-end close of old fiscal year Customize new G/L Customize migration Activate split check Test Migration

Phase 2 Go-live Migrate to New G/L

Perform migration Transfer Data into new tables: FAGLFLEXA/FAGLFLEXT Run carry forward of fiscal year into new totals table: FAGLFLEXT Update of split Info if needed.

Recommendation is that Date of migration is at the beginning of a fiscal year Year-end closing of old fiscal year must be completed prior to activation of new G/L Source ledger of migration data must be determined by company code and account
People Making Technology Work

Migration to New G/L New Ledger Implementation/Migration

Phase 0
Planning/Blueprint

Phase 1
Migration and Testing

Phase 2
GO-Live

Date of Migration of Fiscal Year change

Date of Activation De-activate Classic Ledger

Migration to New G/L

SAP Migration Services
It is required to use SAPs Migration service for the migration to New G/L
Phase 0 Planning/Blueprint Phase 1 Migration and Testing SAP Migration Services
Questionnaire Scenario Validation Review Session Review Session Service Session 1 Customer Configuration & Testing Test Validation Service Session 2 Production Support

Phase 2 GO-Live

Review Session

People Making Technology Work

Service Session 1

Service Session 2
Validate Test migration Technical check checks of migration customizing against target customizing of new G/L

Production Support
24 H/R DAY Back office Support

Check Hot pack level Landscape validation Check Components in use Migration scenario checks Analysis Job logs & Control tables

Migration to New G/L

Plan a Timeline for your migration project around six months SAPs New G/L migration support service is mandatory for all new G/L migrations. Upgrade to mySAP ERP must be completed prior to the new G/L migration Make sure all open item manage accounts is up to date and cleared Classic ledger can be used in My SAP ERP is not a requirement to MIGRATE to New G/L SAP will continue to support the classic G/L format New G/L migration process is a consulting project Only use Consultant with New Ledger Experience
People Making Technology Work

Questions ???
Thanks For your time

Additional Question can be send to: Johannes Le Roux - leroux@vortexconsulting.net

People Making Technology Work

Vortex at Glance
Vortex was Founded in 1997 Vortex Consulting specializes in SAP consulting service in the US and Canada. We have a national reach of SAP talent in the US and Canada We Provide proven, senior-level consultants who immediately contribute to the success of your project. Our consultants bring an in-depth understanding of SAP and extensive implementation experience. We are experienced consultants ourselves, and know what it takes for a consultant to be effective.

Vortex Consulting understood our needs I would highly recommend and constraints, and provided us with high- Finding Vortex Consulting Vortex. They are professional, quality consulting resources. I have been was one of the lucky breaks dedicated, and have the ability to extremely pleased with both the consultant of our project. provide resources who and follow-up communications, as they John Thorburn consistently exceed ones continued to ensure our satisfaction. Project Director, expectations. Karen Tunucci, Canadian Defense John Trecka, Director of Applications Electronics Mfg Director of IT Intl Dairy Queen MSL Manufacturing

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