New General Ledger – Key
Configuration/Processes and
Lessons Learned
10/24/2007
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
1
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
2
Overview – Project
Overview/Scope
– Client is a Fortune 500 Company and performs limited
manufacturing
– Version being implemented is ECC and BI
– Initial implementation of SAP involves FI/CO for North America
– Entities in other countries are implemented but only to load trial
balance data
– Legacy systems interface sales and purchasing data/Phase II will
implement SD, MM, and other functionality
– ECC Scope includes New G/L, A/P, A/R, AM, CO-CCA, and CO-
OPA
– CO-PA initially considered but later removed from scope
– Currently in Testing phase (thorough unit testing completed)
3
Overview – Key Requirements
– Fully balanced balance sheet and P/L by legal entity
– Fully balanced balance sheet and P/L by operating unit (major
division of the business)
– Partial balance sheet (Working Capital) and full P/L by branch
– Operating expenses by department
– Partial balance sheet (Working Capital) and P/L to gross margin by
Commodity Code and Manufacturer (the key requirement for New
G/L with custom fields)
– Fully balanced balance sheet and P/L for logistical legal entity
(done for tax purposes)
– FI/CO to always reconcile
4
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
5
New General Ledger Set-up/Lessons
Learned – Custom Fields
Key Business Requirement:
– Partial balance sheet (Working Capital) and P/L to gross margin
needed by Commodity Code and Manufacturer:
• Balance sheet data need key driver to use custom fields
• Two custom fields defined and added to G/L code block
• Two custom check-tables defined to store valid values for each
field
• Check tables added to COBL structure to provide standard list
display of valid values
• Additional validations defined to check valid Commodity
Code/Manufacturer value combinations and valid
Commodity Codes/Profit Center combinations
6
New General Ledger Set-up/Lessons
Learned – Custom Fields
Custom Fields:
– SAP ECC allows the addition of custom fields to the code block of
the General Ledger
– Once added, these fields behave like other account assignment
fields
– Fields can be without or with validation
7
New General Ledger Set-up/Lessons
Learned – Custom Fields
– Configuration Step: Include Custom Fields to Code Block
• Step will regenerate all structures/programs to include custom
fields
8
New General Ledger Set-up/Lessons
Learned – Custom Fields
– Configuration Step: Define Master Data Check
• For the custom fields, the master data check tables (custom
check tables created) must be defined (custom check tables still
added to COBL)
9
New General Ledger Set-up/Lessons
Learned – Custom Fields
– Other Key Configuration Steps
• Custom fields must be added to all Enjoy transactions
• Custom fields must be added to code block subscreen if older
G/L transactions are to be used
• Posting key/account field status - custom fields, upon generation
become part of field status configuration, but initial setting is
“hidden”
10
New General Ledger Set-up/Lessons
Learned – Custom Fields
– Lessons Learned:
• Add check tables to COBL for drop-down functionality
• BAPI extensions on G/L postings
• Custom fields working well
11
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
12
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
Key Business Requirements:
– Fully balanced balance sheet and P/L by operating unit (major
division of the business)
– Partial balance sheet (Working Capital) and full P/L by branch
• The Segment is included with New G/L
• Segment is derived by Profit Center (Profit Centers defined for
Branch reporting)
• Balanced financial statements can be generated by Segment
using Splitting functionality
• All posting line items must identify a profit center in order to
ensure full set of financial statements by Segment
13
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
Business Area vs. Segment
– Both provide balanced financial statements (balance sheet and
P/L) by reporting entity other than Company Code
– Segment offers SAP-delivered derivation from Profit Center master
record (validated “business” definition)
– Business Area not used due to derivation; Segment viewed as
“cleaner” solution
14
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
– Configuration Step: Assign Segment Scenario to Ledger
• Activating the Segment scenario allows for population of
Segment in New G/L
15
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
– Configuration Step: Define Segments
• Define the list of Segments to be used
16
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
– Master Data Step: Specify Segments on Profit Center master
records
• Profit Center specified on posting line will derive Segment from
master record
17
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
– Configuration Step: Define Splitting Characteristics (Segment set
to zero-balance)
• Splitting functionality drives balanced Segment reporting
18
New General Ledger Set-up/Lessons
Learned – Segment vs. Business Area
– Lesson Learned
• Partner Segment derivation functioning mostly correctly except
for inter-company transactions
– Resolution
• Custom program or user exit for Partner Segment derivation
under investigation as potential solution
– Lesson Learned
• Segment not available on all standard SAP reports
– Resolution
• Currently contacting SAP about this issue
19
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
20
New General Ledger Set-up/Lessons
Learned – Ledger Definition/Scenarios
Key Business Requirement:
– FI/CO to always be in balance
• Client very sensitive to any potential out-of-balance points with
reporting in FI/CO and Profit Centers
• Profit Center absorption in New G/L (and scope) resulting in
client leaning towards New G/L for most reporting
• Cost Center Accounting sub-module “dangling” – most cost
center reporting performed within New G/L
• Most scenarios activated for Ledger
21
New General Ledger Set-up/Lessons
Learned – Ledger Definition/Scenarios
Ledger Definition:
– Leading Ledger delivered by SAP and used in New G/L
– Other Ledgers can be defined if needed
– Scenarios activated in ledger to capture updates in New G/L
22
New General Ledger Set-up/Lessons
Learned – Ledger Definition/Scenarios
– Configuration Step: Assign Scenarios to Ledger
• All scenarios applicable assigned so as to update New G/L with
all relevant postings
23
New General Ledger Set-up/Lessons
Learned – Ledger Definition/Scenarios
– Lesson Learned:
• Given scope and heavy use of BI, users trending towards New
G/L for reporting
24
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
25
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
Key Business Requirements:
– Fully balanced balance sheet and P/L by operating unit (major
division of the business)
– Partial balance sheet (Working Capital) and full P/L by branch
• Profit Centers defined for Branch reporting
• Segment is derived by Profit Center
• All posting line items must identify a profit center in order to
ensure full set of financial statements by Segment
• Profit centers used in New G/L; Profit Center Accounting is no
longer updated
26
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
Profit Centers in New G/L
– With New G/L, Profit Center Accounting not used– Profit Centers
are a field within the ledger
– GLPCA, GLPCT, etc. tables no longer updated
– CEPC table still store master data information and original
transactions still used to create, change, etc.
27
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
– Configuration Step: Controlling Area Settings – Do Not Activate
Profit Center Accounting
28
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
– Configuration Step: Assign Profit Center Scenario to Ledger
• Activating the Profit Center scenario allows for population of
Profit Centers using New G/L
29
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
– Master Data Step: Define Profit Centers
• Profit Centers maintained using transactions used in Profit
Center Accounting
30
New General Ledger Set-up/Lessons
Learned – Profit Centers in New G/L
– Lesson Learned
• Lack of availability of sub-ledger detail New G/L (. vendors,
customers, assets, etc.)
– Resolution
• Two standard SAP reports provided for receivables and payables
for Segment/Profit Center
• Solution being addressed within BI
31
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
32
New General Ledger Set-
up/Lessons Learned – Splitting
Key Business Requirements:
– Fully balanced balance sheet and P/L by operating unit
– Partial balance sheet (Working Capital) and full P/L by branch
– Partial balance sheet (Working Capital) and P/L to gross margin by
Commodity Code and Manufacturer
• Splitting used as part of New General Ledger
33
New General Ledger Set-
up/Lessons Learned – Splitting
Splitting:
– Splitting is the most important aspect of configuration of New G/L
relating to how fields are populated
– Zero-balancing needs and required fields defined in Splitting
– Two key aspects for any transaction: what line items are “spoon-
fed” and what line items are split
– Two key views to any transaction: Entry View and Splitting View
34
New General Ledger Set-
up/Lessons Learned – Splitting
– Configuration Step: Identify Splitting Characteristics
• Fields to be split must be identified in this step
• Any zero-balancing fields must be identified (Segment)
• Any fields which should always be populated after splitting occurs
must be identified (Profit Center)
35
New General Ledger Set-
up/Lessons Learned – Splitting
– Configuration Step: Classify Document Types for Splitting
• All Document Types being used must be assigned
• Each Document Type is mapped to a Business Transaction and
a Variant
• The Transaction Type and Variant tell splitting what G/L accounts
should split and what G/L accounts are “spoon-fed” values
36
New General Ledger Set-
up/Lessons Learned – Splitting
– Configuration Step: Classify Document Types for Splitting
• All G/L accounts being posted are mapped to an Item Category
37
New General Ledger Set-
up/Lessons Learned – Splitting
– Configuration Step: Define Document Splitting Method Rules
• In Splitting Method configuration, each Business Transaction
(combined with the variant) is told what item categories are being
split…
38
New General Ledger Set-
up/Lessons Learned – Splitting
– Configuration Step: Define Document Splitting Method Rules
• And for each item category being split, the basis (base Item
Categories on which splitting is to occur) is defined
39
New General Ledger Set-
up/Lessons Learned – Splitting
– Other Key Configuration Items:
• Define Zero-Balance Clearing – a zero-balance clearing account
is defined for all characteristics requiring balanced entries
(Segment)
• Define Default Values – For characteristics being split, default
values are defined for transactions where it is not possible to
determine correct splitting
40
New General Ledger Set-
up/Lessons Learned – Splitting
– Lesson Learned
• Standard splitting method (method 12) defined by SAP and
recommended for use did not perform as expected
– Resolution
• Custom method created based on SAP-delivered method 2
(minor changes required)
– Other Lessons Learned
• Pervasiveness of Splitting
• Variations in document processing can require different
Document Types
• Field status must be set to “optional” on accounts for which
characteristics are being split
41
New General Ledger Set-
up/Lessons Learned – Splitting
– Example Journal Entry – Vendor Invoice “Entry View”
• Two views of New G/L accounting documents with splitting:
Entry View and General Ledger View
• Entry View shows the document as it was entered in the system
42
New General Ledger Set-
up/Lessons Learned – Splitting
– Example Journal Entry – Vendor Invoice “General Ledger View”
• General Ledger View shows the document after splitting was
performed
43
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
44
New General Ledger Set-up/Lessons
Learned – Allocations/Statistical Key
Figures
Key Business Requirements:
– Partial balance sheet (Working Capital) and full P/L by branch
– Partial balance sheet (Working Capital) and P/L to gross margin by
Commodity Code and Manufacturer (the key requirement for New
G/L with custom fields)
• Ability to allocate data (both Balance Sheet and P/L data)
between Profit Centers and custom fields needed
• Statistical information (. headcount, square footage, etc.)
needed to be recorded by Profit Centers and custom fields
45
New General Ledger Set-up/Lessons
Learned – Allocations/Statistical Key
Figures
Allocations/Statistical Key Figures
– Distribution/Assessment functionality provided within New G/L
– Allocations may or may not use Statistical Key Figures as a basis
for allocation
– Allocations (assessments and distributions) and posting Statistical
Key Figures function similarly in New G/L as they do in CO-CCA
46
New General Ledger Set-up/Lessons
Learned – Allocations/Statistical Key
Figures
– Configuration Step: Assign Custom Fields to New G/L Statistical
Key Figure Totals Table
• A separate totals table is used for storing Statistical Key Figures
in New G/L – the custom fields must be added to it
47
New General Ledger Set-up/Lessons
Learned – Allocations/Statistical Key
Figures
– Configuration Step: Define Field Usage for Allocations
• Custom Fields must be defined for use within New G/L
allocations
48
New General Ledger Set-up/Lessons
Learned – Allocations/Statistical Key
Figures
– Lesson Learned
• New G/L allocations between cost centers and New G/L
Statistical Key Figure postings to cost centers will not update CO
– Resolution
• All transactions involving cost centers should be generated from
within Cost Center Accounting – with the Cost Center Update
scenario activated, New G/L is updated
– Lesson Learned
• New G/L allocations do not update ledger with detailed cycle data
49
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
50
New General Ledger Set-up/Lessons
Learned – FI/CO Real-time Integration
Key Business Requirements:
– FI/CO to always reconcile
• Client wanted FI/CO on real-time basis to always balance to
avoid confusion
• Cost Center Accounting set to update in New G/L in order to
allow update in New G/L using existing CoA
• High-level of FI/CO reconciliation needed
51
New General Ledger Set-up/Lessons
Learned – FI/CO Real-Time Reconciliation
FI/CO Real-Time Reconciliation
– Reconciliation moves from Reconciliation Ledger run monthly to
real-time basis
– Level of reconciliation enhanced
– Reconciliation runs automatically
52
New General Ledger Set-up/Lessons
Learned – FI/CO Real-time Integration
– Configuration Step: Activate Real-time Integration and Define
Reconciliation Ledger Account Determination
• Various levels of reconciliation are possible; account
determination can occur:
–At the overall level
–By CO transaction
–By secondary cost element (uses substitution rule)
53
New General Ledger Set-up/Lessons
Learned – FI/CO Real-time Integration
– Configuration Step: Define Reconciliation Account Substitution
• Overall FI/CO reconciliation account defined and used as
prerequisite for substitution
• Customer-defined user exit branches to custom table which
stores relationships
54
New General Ledger Set-up/Lessons
Learned – FI/CO Real-time Integration
– Master Data Step: Define Secondary Cost Element to Primary
Cost Element Mapping in Custom Table
• If no custom table, substitution rule would have number of steps
corresponding to number of secondary cost elements
55
New General Ledger Set-up/Lessons
Learned – FI/CO Real-time Integration
– Lesson Learned
• Internal order settlement to G/L accounts (where orders received
allocations) required mapping of secondary to primary cost
elements
– Resolution
• Allocations structure of Internal Order expanded to include
mapping
• Extensive use of External Settlement cost elements
56
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
57
New General Ledger Set-up/Lessons
Learned – Technical Structures
Key SAP ECC New G/L tables
– BKPF/BSEG – Existing accounting header/line item tables are still
used in New G/L
– FAGLFLEXA – The New G/L actuals line item table contains the
document number/line items with the key New G/L reporting
characteristics
– FAGLFLEXT - The New G/L totals table aggregates data in the
FAGLFLEXA table by fiscal period/year and uses various object
numbers to reference the characteristic values applied to the
amounts
– FAGLFLEX## - New G/L object tables which store characteristic
value combinations that reference an object number (which are
used in the FAGLFLEXT table)
58
New General Ledger Set-up/Lessons
Learned – Technical Structures
– Lesson Learned
• BI drill-back from FAGLFLEXT to FAGLFLEXA contains minimal
attribution
• BI drill-back from FAGLFLEXT to BSEG on split characteristics
would produce incorrect results
– Resolution
• Custom extract being performed to “mimic” splitting in BI
• Issue logged with SAP – Enhancement Package 3 due in
beginning of year 2008 (new extractor: 0FI_GL_14)
59
Agenda
• Overview
– Project Overview/Scope
– Key Client Requirements
• New General Ledger Set-up/Lessons Learned
– Custom Fields
– Segment vs. Business Area
– Ledger Definition/Scenarios
– Profit Centers in New G/L
– Splitting
– Allocations/Statistical Key Figures
– FI/CO Real-time Integration
– Technical Structures
• Conclusions
60
New General Ledger Set-
up/Lessons Learned – Conclusions
– Implementation progressing on-schedule
– Expansive unit-testing phase flushed out many errors early in the
testing process
– Extensive time spent in analyzing all New G/L configuration during
Design phase; minimal major issues being uncovered
61
New General Ledger Set-
up/Lessons Learned – Questions
Questions
62
