Migration to New General Ledger Accounting – Overview

Many different migration scenarios are imaginable for the transition from classic General Ledger Accounting to New General Ledger Accounting, ranging from the straightforward merge of existing ledgers to a totally new conception of accounting, such as the introduction of segment reporting for compliance with new accounting principles.

In particular in the case of a new conception of accounting, there are two aspects to the transition to New General Ledger Accounting: firstly, a conceptual business part, and secondly, a technical part dealing with the migration of the existing accounting data to the new structures for General Ledger Accounting.

New Functionality in the New General Ledger

General Ledger Accounting

Segment Reporting

Segment reporting is a legal requirement in many countries. US GAAP, and IFRS require a segment to be reported if the total external revenue of the segment exceed 10% of the total revenue. They also require to report income statement and balance sheet to be reported by segment. The big change in Segment reporting is that there is now a separate filed in the Profit Center master record.

Document Splitting

Document Splitting is a functionality that allows full financial statement to be produced at a level lower that the company code. Also line items can be split by profit center, segments, functional areas, commitments items, funds, funds program, and grants. In order to utilize document splitting activation has to be completed. Some configuration steps will be document splitting method, business transaction, business transaction variant, item categories, etc.

Parallel Ledgers

With the globalization of many organization there is an increase requirement to produce parallel sets of financial statements in accordance with different financial principle such as US GAAP, IFRS etc.

Major Advantages of All These Three Functionality

• Faster Period End Closing
• Document Splitting in Real Time
• Real time posting to CO to FI no longer at period end.
• Legal and Mgt. reporting are unified in one ledger.
• Higher ROI on your investment.
• Balanced books by any dimension
• Fast Close
• TCP Reduction
• Transparency for drilldown reporting.
• Legal Entity Reporting
• Segment Reporting.

Some Important Technical Facts about Migration

• The line item table in the new G/L is FAGLFLEXA and the totals table is FAGLFLEXT.
• The migration does not make any changes to the existing classis G/L line items table BSEG or totals table BKPF, the secondary indexes or the totals table GLT0.
• The migration does not make any changes to data in other ledgers, such as the profit center accounting, cost of sales, reconciliation, or special-purpose ledger.

Main Transaction Codes for Migration

If migration is not successful for what ever reason. below are the main transaction codes:

• Complete reset (FAGL_MIG_RESTORE_ALL)
• Reset of open items (FAGL_MIG_RESTORE_OP)
• Reset of documents transfer from current year (FAGL_MIG_RESTORE_RP)
• Main New GL tables FAGLFLEXA and FAGLFLEXT.
• Main Transaction CNV_MBT_NGLM

IMG Migration Activities:

• Close Posting Periods in the prior Fiscal Year
• Create Work-list/Activate migration plan
• Create Work-list (FAGL_MIG_OPITEMS_FILL) and (FAGL_MIG_RPITEMS_FILL) as background jobs.
• Create work-lists individually/Create work-list for open items.
• Create work-lists individually/Create work-list for documents.
• Enrich the open items with account assignment information
• Transfer open items from previously created work-list
• Build documents splitting information
• Subsequently post documents for current fiscal year from work-list.
• Create GL Line items and balance carry forward for all GL accounts not managed on an open item basis.
• Display log for balance carry forward.
• Reset balance carry forward.
• Repost balance carry forward manually.