Scribd
Upload
1K views3 pages

New GL and Classic GL

Uploaded by

Rizky Wahyu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
1K views3 pages

New GL and Classic GL

Uploaded by

Rizky Wahyu
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 3

Comparative Analysis between New GL and Classic GL

New GL and Classic GL are two ways to implement General Ledger functionality in SAP ECC5 and ECC6. New GL provides lot of benefits over classic GL. The New GL benefits Provide an extension to the existing functionality in classic GL, or Provide new functionality compared to classic GL, or Provide a technologically superior way to perform a functionality in Classic GL

It is imperative to understand the differences between Classic and New GL to be able to understand which solution addresses the business requirements better. I am providing a comparative analysis of the basic differences between Classic and New GL. (1) Extended Data Structure provides flexibility SAP has consolidated the multiple totals table (GLT0, GLPCT, etc) in classic GL into a single FAGLFLEXT Totals table with New GL. One Summary Table provides flexibility and faster response time for reporting. FAGLFLEXT can also be enhanced by adding customer defined fields. (2) Segment Reporting to ensure Statutory Requirements IAS accounting standards define the statutory requirements for segment reporting. New GL has document splitting functionality that enables segment reporting. Standard Segment Reporting functionality is not available in Classic GL. (3) Real Time Integration between FI and CO Classic GL has the period-close reconciliation ledger functionality to synchronize FI and CO for cost transfers across functional area, business area and company code originating in CO. New GL has a real-time integration between FI and CO that happens with each transaction originating in CO instead of a summary posting done by reconciliation ledger during period-close. (4) Parallel Accounting New GL provides Non-leading ledgers for parallel accounting like IFRS and GAAP. Parallel accounting can also be implemented using Account based approach which is also available in classic GL. (5) Reduce TCO by Faster Period Close Activities Faster Period Close is possible with New GL as,

(a)

Reconciliation Ledger is not required

(b) Balance sheet Adjustments are not required (c) Profit and Loss Adjustment are not required

(d) Activities related to Special Purpose Ledger are not required (e) Depreciation posting is online instead of a batch session

(6) Flexible Drill-down Reporting in New GL New GL has advanced drill-down capabilities by segment and other characteristics.

Benifits of NEW GL The new General Ledger in mySAP ERP has the following advantages over the classic General Ledger in R/3 Enterprise: a) In the new General Ledger, you can display the parallel accounting using parallel accounts (as in R/3) or using parallel ledgers. The FI standard functions and reports are available for all parallel ledgers. b) The 'Segment' entity and the relevant reporting that are required for segment reporting according to IAS and U.S. GAAP are available in the new General Ledger. c) In addition, you can enhance the new General Ledger flexibly, that is, you can enter user-defined fields and update the relevant totals. Many standard reports can evaluate the information from the user-defined fields. d) When you use the new 'Document Splitting' function (online split), you can create financial statements at company code level and, if required, for entities, such as the segment. For each document, the system then creates a zero balance for the relevant entity, for example, for the segment. e) As a result, you no longer have to carry out time-consuming reconciliation tasks between FI and CO for the end of period since cross-entity processes are transferred in real-time to the new General Ledger in Controlling. Furthermore, you can, for example, navigate from the financial statements report results or the profit and loss statement report results to the relevant CO report. f) The new General Ledger uses the same interfaces as the General Ledger in R/3. As a result, users do not require any additional training. g) Due to the new 'multi-dimensional' aspect in the General Ledger, all data that is relevant for the General Ledger is stored in one environment. As a result, reconciliation tasks, for example, between the general ledger and Profit Center Accounting or the consolidation staging ledger, and processing steps that have to be carried out repeatedly in the individual applications (for example, balance carryforward are no longer required. When you use the new General Ledger, you may not have to use the special ledger anymore.

You might also like