New GL with document splitting: Legacy data transfer

You plan to use the new general ledger in mySAP ERP with active document splitting. Beforehand, you need to determine the best way to transfer legacy data from operational systems with the minimum amount of effort?

Reason and Prerequisites

You want to create a new system, and copy the posting data from financial accounting from an old system or an external system.

Solution
This note gives you a rough guide of the options you have when you transfer legacy data. However, it is not a complete guide and there are also be other scenarios. Therefore, you should always set up a legacy data transfer as a project and carry it out with your SAP consultant on site. This note can only provide limited help in the process.

The following two scenarios are possible:
1. Legacy data transfer from an SAP system.
2. Legacy data transfer from an external system.

Scenario 1: Legacy data transfer from an SAP system.
Create a copy of your existing SAP R/3 system and then carry out the technical upgrade to mySAP ERP.
You can then carry out the migration from the classic G/L accounting to the new G/L accounting within the framework of a project.

To ensure maximum security, SAP supports each migration project with a migration service.
Scenario 2: Legacy data transfer from an external system.
This scenario can in turn be spilt up into the following subsections.
These influence how the documents should be transferred:

2.1.   G/L accounts, not managed on an open item basis
2.2.   Accounts that are managed on an open item basis (in particular customers/vendors)
2.2.1. Singular account assignment
– Substitution
– Constant
– Inheritance
2.2.2. Distributed account assignments
– Documents with offsetting lines
– Migration with migration customizing (Enter splitting)

In principle, it is always best if you prepare the data in the operational system with corresponding quality, and if the corresponding items are delivered with the account assignments required for the document splitting.

2.1. Normal G/L accounts not managed on an open item basis:
In the new system for G/L accounts, you should post to period 12 of the old fiscal year (and the posting date should be the last day of the fiscal year) (you can use report RFBIBL00 to do this, for example). As a result of the normal balance carryforward, you receive a start financial statement in period 0 of the new fiscal year.

2.2. Accounts that are managed on an open item basis:
The open items must be posted to the legacy system in the same way, for example with original posting date, due date, term of payment and so on.

2.2.1. Singular account assignment.
Within the FI substitution (Callup point 2 – Document level), you assign a unique account assignment to the receivables/payables or to accounts that are managed on an open item basis. The document splitting should not carry out splitting anymore and should copy the account assignment from the open item directly. The subsequent processes then refer to the substituted account assignment.
Alternatively, you can post the open items individually, where the offsetting line has a unique account assignment. If the inheritance is active in the document splitting, the account assignment is transferred to the open items. During this procedure, the account assignment is only set in the general ledger view.

If no complete opening balance sheet has to be created on additional account assignments, a standard constant can be set in the document splitting. The account assignments of this constant are set on all rows that are not assigned to accounts. After the transfer, this function of the standard account assignment can be deactivated again.
Alternatively, a separate splitting rule can also be defined, which assigns a constant to the items that are not assigned to accounts. This splitting rule can be assigned to a document type that is only used within the framework of the data transfer.

2.2.2. Distributed account assignments.
In the general ledger view, the open items should be distributed to the general ledger characteristics.
– During the posting of the documents with the open items, the document splitting should distribute the open items on the basis of the offsetting lines that are assigned to accounts. The expected relationship of the account assignments to the open items is displayed in the offsetting lines. Where necessary, a separate document splitting rule must be defined, which is assigned to a document type created especially for the legacy data transfer.

– The legacy data transfer occurs in the classic G/L accounting (the new G/L accounting is not active). Within the framework of the following migration from the classic G/L accounting to the new G/L accounting, there are tools which can enter a distribution for document items for documents of the current fiscal year. In this case, using a migration scenario with document splitting is absolutely necessary. Note that this process, that is, first transferring legacy to the classic G/L accounting, and then carrying out the migration usually means more work in the project.

Important: Up to the last point, the document splitting must always already be activated and set completely during the transfer! Otherwise, you will have more work to do when you use the document splitting at a later stage.

Migration from Classic General Ledger to New General Ledger

New Functionality in the New General Ledger

  • 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.

Why Use New General Ledger

The following table gives the business requirements at the backend which prompts the finance department of the comapny to go for NEW GL implementation.

S.N Business Requirements New GL Functionality
1 Reporting as per different GAAP Concept of multile ledgers- leading and non leading ledgers
2 Unified Mangement & legal reporting Profit Centre integrated with the New ledger
3 Requirement of segmental reporting(in line with US GAAP) Segment can be defined as an enterprise element
4 Financial statement below company code level Document spilt functionality
5 Reporting as per cost of sales accounting Functional area included

Each one of these functionality is unique and elaborate and has the features ingrained to meet the different requirements emerging for the external reporting purpose.