New GL and Document Splitting in SAP FI

[Audio] New GL and Document Splitting in SAP FI ---.

[Audio] Overview of New GL. Introduction to New GL.

[Audio] New General Ledger (New GL) in SAP FI is an advanced version of the classic GL introduced to enhance financial reporting and compliance capabilities. It provides functionalities such as parallel accounting, real-time integration between Financial Accounting (FI) and Controlling (CO), and segment reporting. Unlike the classic GL, which required manual reconciliation between FI and CO, New GL automates this process, reducing errors and improving efficiency. It also supports multiple ledgers, allowing organizations to maintain separate books for different accounting principles like IFRS and local GAAP. This flexibility is crucial for multinational companies operating under diverse regulatory frameworks. Additionally, New GL introduces document splitting, enabling detailed reporting by segment or profit center, which is essential for compliance with IFRS segment reporting requirements. Overall, New GL offers a robust platform for transparent, accurate, and real-time financial management..

[Audio] Key Features of New GL, Benefits Over Classic GL.

[Audio] New GL introduces several key features that distinguish it from the classic GL. These include parallel ledgers for managing multiple accounting standards within a single system, real-time integration between FI and CO to eliminate reconciliation efforts, and enhanced reporting capabilities through segment and profit center reporting. Document splitting is another critical feature, allowing financial documents to be divided into multiple line items based on predefined characteristics such as segment or business area. This ensures that complete financial statements can be generated for each segment, supporting compliance with IFRS and other international standards. Furthermore, New GL offers flexible reporting structures, enabling organizations to tailor financial statements to meet statutory and internal requirements. These features collectively improve transparency, accuracy, and efficiency in financial operations..

[Audio] The transition from classic GL to New GL brings significant benefits to organizations. One of the most notable advantages is the elimination of manual reconciliation between FI and CO, as New GL ensures real-time integration. This reduces errors and accelerates financial closing processes. New GL also supports multiple ledgers, enabling companies to maintain separate books for different accounting principles, which is essential for global compliance. Enhanced transparency through segment reporting and document splitting allows for detailed financial statements by business unit or region, improving decision-making and regulatory adherence. Additionally, New GL provides flexible reporting options, making it easier to generate statutory and management reports without complex adjustments. These improvements streamline financial processes, reduce operational costs, and enhance compliance with international standards..

[Audio] Concept and Purpose, Configuration Steps.

[Audio] Document splitting in New GL is a functionality that divides accounting documents into multiple line items based on characteristics such as segment, profit center, or business area. The primary purpose of document splitting is to enable complete financial statements for each segment, ensuring compliance with IFRS segment reporting requirements. For example, if a vendor invoice of $10,000 relates to two segments, document splitting will automatically allocate $5,000 to each segment, creating separate line items. This automation eliminates the need for manual allocations and improves reporting accuracy. Document splitting also supports internal management reporting by providing detailed insights into the financial performance of individual segments or profit centers. By implementing document splitting, organizations can achieve greater transparency and control over their financial data..

[Audio] Configuring document splitting in SAP involves several steps. First, activate New GL functionality in system settings. Next, define document splitting characteristics such as segment, profit center, or business area, which will be used to split documents. Then, assign splitting rules to transaction types, specifying how amounts should be distributed among the defined characteristics. Finally, test postings to ensure that documents are split correctly according to the configuration. Proper setup of document splitting ensures accurate segment reporting and compliance with international accounting standards. It also simplifies financial closing processes by automating allocations that would otherwise require manual intervention..

[Audio] Classic GL vs New GL vs S/4HANA Universal Journal, Practical Scenario of Document Splitting.

[Audio] Classic GL, New GL, and S/4HANA Universal Journal represent different stages of SAP's evolution in financial accounting. Classic GL relies on multiple tables and offers limited reporting capabilities, requiring manual reconciliation between FI and CO. New GL introduces parallel ledgers, document splitting, and real-time integration, significantly improving compliance and reporting flexibility. In S/4HANA, the Universal Journal consolidates all financial and controlling data into a single table (ACDOCA), enabling real-time analytics and simplified architecture. This eliminates redundancy and provides a single source of truth for financial data. The Universal Journal also supports advanced features like predictive analytics and embedded reporting through SAP Fiori, making it the most powerful and user-friendly solution among the three..

[Audio] Consider a scenario where a company receives a vendor invoice of $10,000 that needs to be allocated between two segments: North and South. With document splitting enabled, SAP automatically creates two line items: $5,000 for Segment North and $5,000 for Segment South. This ensures that financial statements for each segment reflect accurate expense allocation without manual intervention. Such automation is particularly valuable for organizations that require detailed segment reporting for compliance with IFRS or internal performance analysis. Document splitting can also be applied to other transactions like customer invoices or asset acquisitions, providing consistent and transparent financial reporting across all business processes..