SAP New GL: The New General Ledger

Companies should now switch to SAP New GL. Why this is important, which functions the new general ledger offers and why the conversion with the software tool of GAMBIT makes sense, you can read here.

What can SAP New GL do for you?

1
Realize faster closings

With SAP New GL you can significantly simplify your accounting processes. Manual reconciliations are a thing of the past thanks to deep integration.

2
Optimize reporting

Use parallel accounting and various accounting options - for example, at the level of profit centers, segments and business areas.

3
Create conditions for the S/4HANA introduction

You can also use the classic general ledger with SAP S/4HANA. We recommend that you switch directly to the modern ledger technology of SAP S/4HANA - ideally as a preliminary project for migration to SAP S/4HANA.

4
Flexible Changeover with the GAMBIT Migration Tool

GAMBIT has developed a tool with which the migration to the new general ledger can be done very flexibly and on any date.

What is SAP General Ledger?

SAP General Ledger (SAP GL) is the general ledger within SAP Financial Accounting (FI). It consists of G/L accounts and is used to record all financial transactions of a company. It is also the basis for the balance sheet.

What is the difference between the classic general ledger and SAP New GL?

In addition to the classic general ledger, a new variant called SAP New GL has been in existence since the introduction of SAP ERP 6.0. But what are the differences to the previous approach?

Companies use general ledgers as well as sub-ledgers and profit center accounting to comply with legal requirements and internal regulations. In earlier SAP releases, these functional areas of accounting were separated from one another. There was no automatic reconciliation between general ledger and subledger. Instead, this had to be done manually each time the accounts were closed.

SAP New GL solves this problem by merging internal and external accounting into a single-circuit system. Period-end closing is thus significantly accelerated. However, this is not the only innovation that comes with the New General Ledger. We will therefore look at the scope of functions in more detail below.

Are you planning to migrate to SAP S/4 HANA? We would be pleased to support you in this step. Learn more about our offer in the area of SAP S/4 HANA Implementation!

SAP New General Ledger: Scope of functions

By migrating to the new SAP general ledger, companies gain access to numerous new functionalities with which they can optimize their financial accounting and controlling processes. These include:

  • Real-time integration of financial accounting and controlling ("Universal Journal")
  • Simplified parallel accounting in different ledgers
  • Document splitting to selected dimensions
  • Accounting options at profit center, segment and business unit level
  • Functions for multiple valuation approaches and material transfer prices now also available in the general ledger
  • Parallel valuation, additionally with transfer prices
  • Valuation areas (position and FX)
  • Harmonized currency settings
  • Elimination of summary tables, thus simplified data model (no more redundancies)

Parallel accounting and deep CO integration ensure enormous time savings

A major advantage of SAP New GL is the possibility of parallel accounting. The ledger solution allows you to use any number of ledgers. International requirements can thus be easily covered. Online postings and closing operations can be performed simultaneously for all ledgers via a uniform interface (similar to the classic general ledger). SAP New GL also provides uniform reporting for all ledgers. This results in greater efficiency and transparency - both in the monitoring of individual transactions and in period-end closing. Last but not least, Fast Close is accelerated, since significantly less double processing and reconciliation is required.

Also worth mentioning is the enhanced integration of Financial Accounting and Controlling, which goes hand in hand with the implementation of SAP New GL. Real-time postings from CO to FI take place. The intermediate step via reconciliation ledger, which had to be carried out for cross-company code postings, is therefore no longer necessary.

The previously mentioned advantages result from the new general ledger in SAP ECC. Will

New GL under S/4HANA, the following added values come into play:

  • Parallel valuation, additionally with transfer prices
  • Valuation areas (position and FX)
  • Harmonized currency settings
  • Elimination of summary tables, thus simplified data model (no more redundancies)

Faster period-end closing

Since the new general ledger no longer requires reconciliation between the cost centers (internal accounting) and the general ledger (external accounting), the repostings at the end of a period that were previously necessary are no longer necessary. Furthermore, in the past, repostings in Controlling did not affect cost of sales accounting until the end of the period.

For example, if a goods receipt is posted, in the classic scenario one document each is created in FI and CO. Although there is a link using a key, these are independent documents that must be stored redundantly. If you now want to distribute the costs from the CO document to profit centers, this was not done automatically in the General Ledger. Instead, the data had to be reconciled manually during period-end closing.

SAP New GL solves this problem: Real-time reconciliation can be activated here, making fast close much more efficient. Incidentally, this also eliminates clearing entries for cash discount deduction, which were not automatically transferred to the CO module in the classic scenario.

Manage finances in real time, even when using different SAP and non-SAP systems? It's possible with SAP Central Finance. We'll be happy to tell you why the switch is worthwhile and how you can benefit in the best possible way!

What is the difference between SAP New General Ledger and Universal Journal?

In practice, the terms "New General Ledger" and "Universal Journal" are often confused. However, there are significant differences. For example, the New General Ledger has existed since SAP ERP 6.0, while the Universal Journal is only available as of S/4HANA (or Business Suite on HANA).

In the New General Ledger, two documents are still created for accounting transactions - one for FI and one for CO. In the Universal Journal, however, the relevant data and documents are completely merged in one table. The combination affects not only CO documents, but also material documents ("Material Ledger"). This drastically reduces the redundant data storage in the system.

How does the migration to the new SAP general ledger work?

Whether S/4HANA migration, carve-out, merger or chart of accounts conversion: the conversion to the new general ledger is often carried out in the context of other measures. Regardless of the reason, however, a migration to SAP New GL is always accompanied by a redesign of business processes. Corresponding projects are therefore suitable for optimizing accounting in SAP. In addition, the creation of an FI template to standardize account assignments is often required.

A chart of accounts changeover should be carried out before the changeover to the New General Ledger. If parallel accounting has not yet been used, this can be done either before or after the migration. The following variants are possible:

  • Before migration: Implement account solution, keep solution after migration or switch to ledger solution
  • Implement account solution after migration
  • Implementing the Ledger Solution after Migration

When subsequently implementing functions in a new ledger system, you should also consider whether it makes sense to introduce the following approaches as well:

  • Segmentation
  • Parallel accounting
  • Other business functions (for example, new SAP Asset Accounting)

Changeover to SAP New GL: GAMBIT tool with significant added value

The migration tool developed by SAP for SAP New GL goes through three different phases:

  • Phase 1: Conceptual design of new General Ledger Accounting, Customizing in the system
  • Phase 2: Closing of the old fiscal year, execution of the migration, activation of new General Ledger Accounting
  • Phase 3: Update of the classic general ledger is deactivated, new general ledger is used

This approach has a crucial weakness: It does not support the changeover to the new general ledger during the year or retroactively. GAMBIT has therefore developed its own migration tool which solves this problem. With the help of the GAMBIT tool a migration is possible on any key date. Thus, the date of the New GL conversion can be chosen freely. If required, the data history (partial or complete) can also be transferred.

Changeover in only one phase

In contrast to the migration model of SAP, the GAMBIT tool works with only one single phase. In this phase, the Customizing of SAP New General Ledger is set up, activated and migrated. Conversion projects are thus much easier to plan and can be carried out in a shorter time.

For systems with a high volume of documents, it is also important that the conversion to the new SAP General Ledger is carried out with a near-zero downtime. GAMBIT can also meet this requirement by splitting the migration according to company codes. The conversion can then take place in several individual steps.

In addition, the GAMBIT migration tool enables a new ledger to be introduced retrospectively. For this ledger, the documents from a selected period are generated retroactively.

GAMBIT supports the conversion to the new general ledger

Of course, GAMBIT supports every phase of a New GL migration project. This already starts with the analysis of your existing ERP system. The GAMBIT experts also support you in the individual definition of the target solution, the redesign of processes as well as in the harmonization of procedures, master data and structures. The same applies to the introduction of parallel accounting, test migrations and the start of production.

Let us advise you now!

You are about to migrate to SAP New GL and want to ensure a smooth migration? You want to implement the changeover with a powerful tool and the greatest possible flexibility? Then let us talk about your requirements today. GAMBIT supports you in all questions!

Andre Schwarz 02

André Schwarz, Senior Executive Consultant

Need more information about SAP Central Finance?

+49 2241 8845 637

Mr.
Mrs.
Divers

Something is missing here

*

Something is missing here

*

Something is missing here

*

Please enter a valid phone number

*

Bitte geben Sie eine gültige E-Mail-Adresse ein

Something is missing here

Something is missing here

I agree that my e-mail and, if provided, my telephone number may be collected, processed and used by GAMBIT Consulting GmbH for marketing purposes. The data will not be passed on to third parties. The consent can be revoked at any time. Further information can be found in our privacy policy

Please check the reCAPTCHA checkbox