SAP delivers the ‘Profit Center‘ and the ‘Partner Profit Center‘ as fixed characteristics that are posted on the original FI postings. The data is not updated, as required, in another ledger, as in the classic Profit Center Accounting.

As a result of integration of the Profit Center Accounting into the new G/L accounting, new functions such as ‘document splitting’ are available. Using the ‘Document Splitting‘ function (online document split), balance sheets can be created for company codes as well as for other entities such as the profit center. The balance is then set to 0 for each document for the profit center.

Integrating classic G/L accounting and classic Profit Center Accounting into the one application also removes the time and effort required.

When implementing the new G/L accounting in Release SAP ERP, we recommend that all new customers map the Profit Center within the new G/L accounting by activating the scenario FIN_PCA (profit center update). The parallel activation of classic Profit Center Accounting in addition to updating parallel data volumes does not make sense, for reasons that will be discussed in the following section.

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Detailed information about setting Profit Center Accounting in the New General Ledger:

Define the update of the characteristics ‘Profit Center‘ and ‘Partner Profit Center‘ in the ledger by selecting the scenario ‘Profit center update‘

Customizing: Financial Accounting (New) → Financial Accounting Basic Settings (New) → Ledgers → Ledger → Assign Scenarios and Customer-Defined Fields to Ledgers

If you want to use the document splitting, the ‘Profit center’ field can be defined as a splitting characteristic in the document splitting:

Customizing: Financial Accounting (New) → General Ledger Accounting (New) → Business Transactions → Document Splitting → Define Document Splitting Characteristics for General Ledger Accounting

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Set the ‘Zero balance‘ indicator again for the added field ‘Profit Center’. Balance sheets can be created on the profit center then. You must also activate the Mandatory Field check to ensure that the profit center is set in all postings. If you want to display balance sheet items at profit center level (for example, receivables and payables) but you do not require complete balance sheets, we recommend that you do not set the ‘Zero balance’ and ‘Mandatory Field check’ indicators.

If you already used classic Profit Center Accounting as an SAP R/3 customer but you now want to use Profit Center Accounting in the new general ledger, you can continue to use classic Profit Center Accounting in parallel to the profit center update scenario in the new G/L accounting in the interim. However, we do not recommend you do this on a long-term basis due to the increased data volume and the increased time and effort required, and in the case of active document splitting, the update response changes.

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However, if the classic Profit Center Accounting continues to play a leading role for you, we recommend that you do not activate the document splitting in the new G/L accounting, and not for other entities such as the segment either. A reason for this is that the classic Profit Center Accounting uses certain functions of the classic general ledger that are no longer available with active document splitting (for example, transaction F.5D, Calculate Balance Sheet Adjustment).

Another reason is that when you use transactions such as 3KEH, FAGL3KEH or FI substitution to set proposal profit centers, this prevents the setting of profit centers due to document splitting (for example, when reading a profit center from the source document or reference document). Refer Note: 826357

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Anyway, you can only migrate from the classic GL to the new GL after you upgrade your SAP R/3 system to SAP ERP.

You must prepare and execute this migration project with the utmost care to ensure accounting is still in order after the migration.

What should we consider when upgrading the new general ledger in SAP ERP?

Solution – read SAP Note 812919 on SAP Service Marketplace.

To ensure maximum security, SAP supports each migration project with the SAP General Ledger Migration migration service. This mandatory technical service is based on standard migration scenarios and includes a scenario-specific General Ledger Migration Cockpit and service sessions to ensure the quality of the data and of the migration project. The service sessions are provided by a NewGL migration back office, which was specifically set up for this purpose.

After you commission the service, you are provided with the General Ledger Migration Cockpit and the service sessions are delivered after consultation.

The migration service contains the following functions:

• General Ledger Migration Cockpit for executing the migration
  • Process tree with scenario-based management by the individual activities of the migration
  • Monitor of the migration steps with status management

• Remote service session to validate the scenario and analyze the system
  • Possible consistency checks against target Customizing of the new general ledger accounting

• Remote service session to validate tests
  • Technical validation checks in a test system after a data migration

• Development support by the NewGL migration back office

For more information about this migration service with a description of the migration scenario, a migration guide and other useful information, see SAP Service Marketplace at: http://service.sap.com/GLMIG

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The new General Ledger in mySAP ERP 2004 has the following advantages over the classic General Ledger in SAP R/3 Enterprise:

• In the new General Ledger, you can display the parallel accounting using parallel accounts (as in SAP R/3) or using parallel ledgers. The FI standard functions and reports are available for all parallel ledgers.
• 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.
• 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.
• 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.
• 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.
• The new General Ledger uses the same interfaces as the General Ledger in SAP R/3. As a result, users do not require any additional training.
• 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.

Default delivery

In new installations, the new General Ledger Accounting is activated by default in mySAP ERP. We do not recommend that new customers use the classic general ledger accounting since using the classic general ledger accounting requires additional migrations at a later stage. As a result, new customers require explicit authorization from SAP to use the classic general ledger accounting. If you want to use the classic general ledger accounting. create and send a CSS message to SAP before you start using the system.
When you upgrade an SAP R/3 system to mySAP ERP, the classic General Ledger remains active at first. If you want to convert your system to the new General Ledger, you can do so within a project after you have completed the upgrade. For more information about this topic, see point 3.

Migration support

To ensure maximum security, SAP supports each migration project with a migration service. This basic technical service is based on standard migration scenarios and is provided in the form of migration packages for a fixed price.

This service is provided by a NewGL migration back office, which was set up for this purpose. After you commission the service, the Migration Cockpit is available to download to the Service Marketplace.

For information about the SAP General Ledger Migration Service, see www.service.sap.com/glmig.

Release restrictions

Check SAP Note 741821.

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• The New GL is more integrated, with fewer specialized applications/tables.  It allows us to accomplish the same thing in a different way – generally better and faster.

• More online/real-time and less batch/month-end focused.

SAP Classic GL vs. mySAP New GL

• SAP’s R/3 Enterprise GL is now called Classic GL

• Both Classic and New GL are available to our clients

• Core concepts of Enterprise Structure, Chart of Accounts, AR, AP, and Banking have not changed.

Concepts:
• Most configuration of Classic GL and New GL is the same, but some small differences occur in transaction
codes or reports.

• Some functionality, such as parallel ledgers and online document splitting, is only in the New GL.

See useful SAP books:
SAP Books

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