sap erp6.0 financials starting new gl for use

8/10/2019 SAP ERP6.0 Financials Starting New GL for Use

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SAP ERP 6.0 Financial Accounting

New General Ledgers Accounting

Fast Closing

Andrei LiASM ERP solut ion management Market Development, APJ

November 21, 2007


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SAP 2007 / SAP G/Lobal Upgrade Office / ERP 6.0 Financials Training / Page 2

Agenda

Unit

Summary

Fast Closing ? Closing Cockpit

Fast Closing ? Intercompany Reconciliation


Why New Financial Accounting?

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Agenda

Unit

Summary





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SAP R/3 FI/CO is a proven track

SAP R/3 FI/CO solution has proven its success.

Business FunctionsProcess Integration

Real time accounting International Accounting

Data output & Reporting

But why New Financial Accounting?


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Our Customers Face Accelerated Change

disruptiveTECHNOLOGY

Nano-tech

RFID

globalWORKFORCE

India / China

War for talent

intensifiedCOMPETITION

BRIC giants

Private equity

increasedRISK

SOX / IFRS

Energy

powerfulCUSTOMERS

Co-creators

Green movement


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Role of F inanc ia l Management has changed

Finance Has

Transformed

Efficiency Gurus

Performance Managers

Planners and Strategists

Risk ManagersProcess Optimizers


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Efficient, standardized corefinancial operations

Compliance &Audi t

FinancialTransactions

Business

Insight

Finance

Services

Increased governance and

greater compliance agility

Transparency of key

business performance

drivers

Optimize financial structure

and capital management

RequirementRole Today

46%

19%

18%

17%

Finance Time Allocation

Goal

Source: CFO Magazine

32%

22%

26%

20%

Transformation of CFO Focus and Importance


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translates into technology priorities

Core processes and business support are the main

technology priorit ies for the CFO

Automating routine

finance processes

Implementing data

analysis/ business

intelligence applications

Supplying relevant

finance data for a

mgmt dashboard

Standardizing

business & finance

applications

Consolidating

corporate databases

Other 1

43

57

61

62

68

Streamlining processes and implementing tools that are

used for decision making are the key priorities

Gartner CFO system priori ties through 2009 **

Automate finance processes

Implement shared service centers for

finance services

Implement Corporate performance

management applications to provide

the right systems to support strategic

activities

Streamline information architecture

that has strong data integration

capabilities to address thisrequirement

Technology priorities of CFO*

Percent of respondents citing as a priority

Sources: *Economist intelligence unit survey, April 2006 **Gartner CFO system priorit ies through 2009, published August 2006

Streamline

transaction

processing

Implement

CPM

applications

Ensure

consistency of

financial & non

financial data


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Ensure Compliance & Mitigate Risk

Accounting and Tax Compliance Efficient Process Controls

Risk Management

Audit Suppor t

Suppor t Exc e l lence inCorporate Operat ions

Travel Management

Real Estate Management

Talent Management & Leadership Dev.

Strategic Sourcing and Procurement

Enhance Finance

and IT Partnership Empower the

Information Worker

Deliver Financialscapabilities at alower cost and moreflexibly

Enable Innovationwithout Disruption

Drive Strategy and Growth

Stakeholder Communication

Strategy Management

Budgeting and Planning

Benchmarks and KPIs

Intangibles Management

Provide Excellence in

Finance Operation Treasury & Risk Management

Working Capital Optimization

Fast Close

Corporate Tax Optimization

Shared Service Centers & BPO

Post-Merger Integration

SAP ERP offering for Financial Management


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Agenda

Unit

Summary





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Market requirements & Motivation for New

General Ledgers Accounting

Segment

reporting

Legal

reporting

Management

reporting

Compliance

TransparencyFast close

Extensibility

Parallel

accounting

TCO reduction

New G/L in

SAP ERP

Balanced books

for any dimension


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SAP New General Ledger ? Global single

Instance

Multi-dimensional balancing

Debit

60

40

Acc nt / SEG

---------- A

---------- B---------- A

---------- B

Credit

60

40

Local GAAP

US GAAP

xxx xxx xxx

Document entry

Debit

100

Acc nt / SEG

----------

---------- A

---------- B

Credit

60

40

Split

Logic

IFRS

xxx xxx xxxxxx xxx

Multi-dimensional

Multi-ledger update

Multipl

e

valuati

on

Maintain and balance multiple dimensions in a

single application Single database for financial and managerial

accounting data

Improve compliance by uniform financial book landscape

Enables faster reconciliations

Enhance period-end closing process efficiency

Automatic accruals and allocations CO-FI integration optimizing reconciliation

Multiple accounting and reporting options

Parallel general ledgers for multiple GAAPs valuation

IAS Segment reporting

Cost of sales accounting

Profit center reporting


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SAP ERP: A Unified World

General Ledger in SAP R/3 Enterprise and SAP

ERP

General Ledger in SAP R/3 Enterprise General Ledger in SAP ERP

Today: Multiple Applications

Special LedgerMulti-dimensional,customer-defined

Industry-Specific LedgersB/S by grant, fund, title

CoGSLedger

Profit Center LedgerManagement and

segment reporting

Classic G/LLegal

requirements

General Ledger suppor ts

Legal requirements

Mgmt. and segment reporting

Extensibili ty by industries

Extensibili ty by customers

Balanced book by any

dimension

Parallel sets of books

Fast close

TCO reduction

Intl. accounting standards

Compliance & transparency


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Advantages of the New G/L ? Overview

The New G/L in SAP ERP has the following advantages over the classic

G/L in SAP R/3 Enterprise:

Flexibility delivered in new G/L via expanded data structure enhancingfinancial data analysis via more dimensions.

The real-time document split (Online Split ) allows financial databalanced upon different dimensions, and improves real time financial

reporting.

You can run real-time CO FI integration , which accelerate theyear end closing process by eliminating time-consuming reconciliationprocess.

The New G/L allows parallel books (Ledger) within the G/L,

improving compliance by maintaining data integrity. Single financial data storage optimize the maintenance efforts and

improves compliance.


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Summary table GLT0

A selection of the fields available:

Advantages in Detail ? Expanded Data

Structure

One look at the database tables will immediately reveal the main standard

enhancements to the data structure:

...

Business areaRBUSA

Account numberRACCT

Fiscal YearRYEAR

Company cod eBUKRS

...

Short nameField

SE11_OLD

Summary table FAGLFLEXT

A select ion of the fields available:

Segment for seg.report.SEGMENT

Business areaRBUSAFunctional areaRFAREA

Profit centerPRCTR

Cost centerRCNTR

Company cod eBUKRS

Cost elementCOST_ELEM

Accou nt numberRACCT

Fiscal YearRYEAR

...

Short nameField

SE11_OLD

New G/LClassic G/L


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Extra coding blocks -- Demo


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Display document: Entry view

Document number: 19000001538 Company code: 1000 Fiscal year: 2007

Document date: 25.08.2007 Posting date: 25.08.2007 Period: 08

0100

0400

ProfitCen

EUR1,000Input tax154000404

SEG B4140EUR6,000Paid service417000403

SEG A1000EUR4,000Paid service417000402

EUR11,000-Vendor X10003111000

SegmentCoCenCurr.AmountDescriptionAccountPKItemCoCd

FB03

Advantages in Detail ? Document Split 1

Business case: vendor invoice

You have a vendor invoice for a gross amount of 11,000.-.

Expenses are assigned to cost centers of two different segments

(Profit centers, business areas or functional areas)

The illustration shows the Entry view .


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Display document: G/L view

Input view:

Document number: 19000001538 Company code: 1000 Fiscal year: 2007

Document date: 25.08.2007 Posting date: 25.08.2007 Period: 08

FB03

Ledger 0L:

Document: 19000001538 Fiscal year: 2007 Period: 08

SEG BEUR0.00

0100EUR600Input tax1540004041000

41400100EUR6,000Paid service4170004031000

SEG B0100EUR6,600-Vend. Paybl.1600003111000

0400

0400

0400

ProfitCen

SEG AEUR0.00

EUR400Input tax1540004041000

1000EUR4,000Paid service4170004021000

SEG AEUR4,400-Vend. paybl.1600003111000

SegmentCoCenCurr.AmountDescriptionAccountPKItemCoCd

Note: The layout/display variant of the document sorts by segment in ascending order with subtotals in the

segment column.

Advantages in Detail ? Document Split 2


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In FI a document is posted to the account

420000 wages. Costs are assigned to thecost center 1000, from which segment A is

derived.

FI 420000, segment A

500.?

Payables

500.?

COCost center 1000

420000 + 500.?

Advantages in Detail ? Real-Time Integration

CO ?> FI

The reconciliation posting in FI is created

automatically in real time to reflect the valueflow from segment A to segment B.

FI 420000, segment A

500.?

420000, segment B

COCost center 1000

420000 + 500.?

420000 - 500.?

Cost center 3200

420000 + 500.?

500.? 500.?

3

2

1

1 3

The document on cost center 1000 is now reposted

to the cost center 3200 by means of a manual

reposting in CO. However, this cost center is

assigned to segment B.

2


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IFRS/IAS

Ledger

(Leading

ledger)

Korea GAAP

ledger

US-GAAP

ledgerChina GAAP

ledger

Example:

Advantages in Detail ? Parallel Accounting

Ledger approach

You could retain full set of accounting data in parallel ledgers based upon different

accounting principles and reporting requirements.

Leading ledgerserves corporate reporting requirements while other ledgers

serves local reporting requirements.

Ledger approach is optional not compulsory, customer could choose to use

account approach as in R/3 in new G/L.


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Parallel Ledgers ? Posting to all Ledgers

If the ledger is not specified at the document entry:

document is posted to all ledgers

Typical transactions: vendor invoice, customer invoice, payment

Ledger A

(IFRS)

(leading ledger)

Ledger C

(US GAAP)

Ledger B

(Local GAAP)


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Advantages in Detail ? Single Financial Data

storage

Cons.

Preparation

EC-PCA

G/L inSAPERP

Online Split:

Balanced book

for any dimension

FI-SL CO-OM

CO-PA

Profit Center

Determination

CoGS Ledger

Currency

TranslationZero BalanceDerivation

Account ing Interface

Persistency Layer

Reconc.

Ledger

Real Time CO ? FI

integration


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AP open item & Payment posting in parallel

ledgers of New G/L -- Demo


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New G/L Customers ? References

Referenc e Cust om er Indust ry Count ry

CorpTech Public Sector Australia

PETRON Corporation Oil & Gas Philippines

HDI Insurance Germany

Nordenia Forest Products Malaysia

Komatsu Machinery Australia

CITIC Industrial Bank Banking China

Higher Education Press Media China

Rio Tinto Aluminium Primary Metal & Mining Australia

With the New G/L in SAP ERP we are able to master all requirements for

parallel valuation (Local GAAP and US-GAAP). We have achieved a

signifi cant TCO reduction during implementation and good acceptance

from our end users.

Dieter Bankosegger, Head of the Financial Accounting Department


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Perfect support of transparency Legal entity, segment and management

reporting as unified whole

Many period-end activities are no longer

required.

New General Ledger in SAP ERP ?

Further Benefits

Less configuration time and more efficient daily

business

Fast Close

Corporate

Governance

TCO Reduction


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Inter-company reconciliation is one of closing steps

Closing

Preparation

Local

CloseGroup

Close

Audi t

Support

Valuation 4

Accounting

Period-End

Close

Analyze 2

Decide

Closing

Cockpit

General

Ledger

Asset

Accounting

ConsolidationAudi t Inform.

System

Management of

Internal Controls

Strategy

Management

Performance

Measurement

. . . . . .. . . . . . . . .

SAP ERP Applications

Intercompany

Reconciliation


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IC Processing ? How to avoid or handle IC

differences?

Integrated IC postings

Automatic derivation of partner documents OR

Relevant data is jointly agreed and automatically posted twice OR

Both postings are done in a shared service center

Electronic Bill Presentment

Customer agrees with invoice and payment in vendor system

Dispute Management

Issues are actively negotiated and do not just show up at period end

IC Reconciliation on document level

Load IC documents into a central system, reconcile, initiate action

IC Reconciliation on totals level Task executed in the consolidation system, no detail available


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Closing Process Without Intercompany

Reconciliation requires respective manual handling

Corporate Group

Group Closing Process

Elimination of AP/AR

Receivables 1000 Payables 2000

EUR 5.000 EUR 3.000

USD 2.000Payab les 1000 Receivab les 1000

USD 3.000 USD 3.500

Company 1300

Local Closing Process

Company 1200

Local Closing ProcessCompany 1100Local Closing ProcessCompany 1000


Receivables 2000: EUR 5.000

Payab les 2000: USD 3.000

Company 2300


Company 2200



Receivables 1000: USD 3.500

Payab les 1000: EUR 3.000

USD 2.000

?Analysis o f d ifferences

difficult

? No communication support

between local and group

accountants

? Posting Period closed

already

?


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Closing Process With Intercompany Reconciliation

Corporate Group

Group Closing Process

Elimination of AP/AR

Receivables Payables

EUR 5.000 EUR 5.000Payables ReceivablesUSD 3.500 USD 3.500

Company 1300


Local Closing ProcessCompany 1000




Company 2300






USD 2.000

Intercompany Reconciliation? Find differences as part of local

closing process

? Communicate with responsible

accountants

Company 1300






Company 2300






USD 2.000

Intercompany Reconciliation? Communicate with responsible

accountants

? Post corrections

Company 1300





Payables 2000: USD 3.500

Company 2300





Payables 1000: EUR 5.000

Intercompany Reconciliation? Enable analysis early in the

closing process

?Avoid di fferences altogether


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Intercompany Reconciliation Process

Data Selection Data Storage

Communication

Data Presentation

& AnalysisPost Corrections *

* Available through programming interface (BAdI)


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Inter-Company Reconciliation ? User Interface

Customer-definable status

icons

Documents that

were assigned

so far

Differences to be

reconciled per

partner

Mailing functionality Extensive searching and

grouping functions

Object Services (create notes,

create attachments, etc.)

I t ili ti D


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Intercompany reconciliation -- Demo


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Agenda


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Agenda

Unit

Summary





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4

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L l R i t C t Cl i Ti


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Financial Statement Publication (Bearing Point, Quote)

Austral ia: 35 WD

Europe: 45 WD

Germany: 74 WD

Publication of consolidated financial statements for listed

companies within :

- USA (SEC) 60 WD

- Germany 60 WD

Legal Requirements: Current Closing Time

Closing ? At What Cost?


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Process

Automat ion

Closing ? At What Cost?

High effort and costs forclosing

Complex process

Many steps

Many dependencies

Many people involved

Difficult process monitoring

What went wrong?

How critical is it?

Who is involved?

Transparent andTimely

Closing Process

Goa l s Requ i r em en t s

Process

Standardization

Appl ication

Integration

Collaboration

Audi tab il it y

Cu r r e n t

P a i n s

World-Class Closing Principles


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World-Class Closing Principles

Organization System

Methods Employees

Fast Close requi res

Corporate Wide Centralized Closing Process Cross Client Scheduling and Operational Control

Event Driven Scheduling not Time Line Dependent

Integration Central sources of information and analysis

Standardized reporting tools

Standardization

Processes Chart of Accounts

Reports

Key Performance Indicators

Automat ion Workflow

Aud itabili ty

Document principle Drilldown

... and will cause changes

Closing Cockpit in SAP ERP Financial


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Features

Configure corporate template for standardized, group-wide

closing process and steps

Derive local task plan and assign organizational units

Schedule and execute programs, reports, transactions, task

f lows (for al l areas of SAP ERP) Monitor tasks ? Display task status, job log, spool list, define

critical path

Communicate with closing team

Schedule Manager st ill exists in ECC 6.0

Closing Cockpit in SAP ERP FinancialFeatures

Closing Cockpit ? Roles


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Closing Cockpit ? Roles

Service

Providers

in Financials

Consumers o f

Services fromFinancials

AP Accountant

AR Accountant

Inventory Accountant

Fixed Asset Accountant

Cost Accountant

General Ledger Accountant

Corporate Accountant

Capital Investment Analyst

Sales Business Analyst

Business Unit Analyst

Production Cost Analyst

Corporate

Analyst

Credit Manager

Cash Manager

Collection Agent

Dispute Manager

Additionally: Manager of Internal Controls and Risk, Audi tor,...

Plant Manager

Purchasing Agent Sales Assistant

Sales ManagerManager

Employee......

Closing Cockpit - Plan, Execute and Monitor


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Closing Cockpit Plan, Execute and Monitor

the Close

Template: Blueprint for

Close (transaction

CLOCOC)

Task List: Execution

Plan for Close

(transaction CLOCO)

Web Application: FAGL_CLOCO_WD

(Closing Cockpit)

Selected SAP Components Supporting Fast


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Selected SAP Components Supporting Fast

Close

Within SAP ERP, you wi ll have a bundle of products to help you

progressing fast close.

Closing Cockpit

Other Fast Close Components within SAP ERP

Accrual Engine

Inter-company Reconciliation

Business Consolidation

Corporate Performance Moni tor

New G/L in SAP ERP

BI Reporting within New G/L

SAP Central Process Scheduler by Redwood

Closing Cockpit template and task list-- Demo


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g p p

Closing Cockpit ? More Quality and Speed at


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g p y p

Less Cost

Cost Reduction

Decreased TCO ? one closing solution for allclosing activities

Improved efficiency

User productivity

Single point of entry for all clos ing activities

Perfect overview of closing status

Easy communication

Quality and Speed

Accelerat ion o f c los ing process

Compliance Transparency

Agenda


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g

Unit

Summary





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Further Informationen on New GL and New GL

Mi ti S i


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Y ou w i ll f in d fu rt h er i nf or m at i on a bo ut t h e N ew GL M ig ra t io n

Serv ice

On the SAP Service Market Place under the following link:

http://service.sap.com/GLMIG

See also Migration Guide on this page

In OSS note no. 812919 (and related ones)

If you have further questions or want to order the service, please send an email [email protected]

Y ou w i ll fi nd fu rt h e r i nf or m a t io n a bo ut t h e N ew Ge ne ra l L ed ge r i n

SAP ERP:

On the SAP Service Market Place under the following link:

http://service.sap.com/gl

Migration Service

Additional SAP New GL Offerings


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Addi t ional SA P Consul t ing o f fer ing:

NewGL implementation consulting (please contact your local subsidiary)Review of New GL blueprint and project plan (please contact your local subsidiary)

Chart of account conversion (System Landscape Optimization service,http://service.sap.com/slo)

Depreciation area change (System Landscape Optimization service,http://service.sap.com/slo)

Fiscal year change (System Landscape Optimization service,

http://service.sap.com/slo)

Addi t ional SA P Solut ion Support of fer ing

SAP Safeguarding program: to ensure technical robustness of your solution(http://service.sap.com/safeguarding)

SAP Solution Management Optimization Services: to keep your SAP solutionrunning optimally (http://service.sap.com/smo)

SAP ERP 6.0 RKT Web Site --- SAP ERP link to Financial and ManagementAccounting RKT learning maps (https://service.sap.com/rkt)


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