General Ledger Accounting in SAP. 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, G/L Accounting also fulfills other requirements for modern accounting:
New General Ledger Accounting in SAP
1), Parallel Accounting
General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers for different accounting principles.
2), 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).
3), Segment Reporting
G/L 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 dimension.
4), Cost of Sales Accounting
You can perform cost of sales accounting in G/L Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension.
Also See: How to do Retained Earnings GL Account in relation to Carrying Forward Balances
The Main Features
General Ledger Accounting comprises the following functions for entering and evaluating posting data:
1), Choice between group level or company level
2), Automatic and simultaneous posting of all sub ledger items in the appropriate general ledger accounts (reconciliation accounts)
3), Simultaneous updating of the parallel general ledgers and of the cost accounting areas
4), 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.
5), 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:
6), Account information
– Totals/transaction figures
– Balance sheet/profit and loss evaluations
However, SAP still offers to choose between the New GL and the old Classic GL way of accounting.
There are certain limitations in the new GL and clients are adopting to the new gl concept.
Also See: Migration to New General Ledger Accounting – Overview
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