SAP

New General Ledger (G/L) functionality

2007-10-19T05:12:00.000-07:00

Segment Reporting with the New General Ledger

One of the requirements of International Financial Reporting Standards (IFRS) is to report financial information by line of business and by geographical area, which is known as segment reporting compliance. It applies to enterprises whose equity or debt securities are publicly traded and to enterprises in the process of issuing securities to the public. Previous SAP releases contained various complex ways to provide this compliance, but the new General Ledger (G/L) available in mySAP ERP offers better quality and modeling of segment reporting.

Beginning with mySAP ERP 2004, SAP introduced new General Ledger (G/L) functionality. In this article, I'll explain the key differences between the new G/L and the classic G/L as well as the new G/L functions that support segment reporting. Subsequent articles will describe other new features, including parallel valuation supported with parallel ledgers and new processes that speed up your period-end closing.
I'll focus on the integration in the new G/L of functionality that used to be in separate ledgers. You can now use a new standard account assignment object called "segment" and new G/L functions to comply with the requirements of the internationally accepted accounting frameworks, such as International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP).
In spite of the convergence initiatives of the accounting frameworks, accounting practices using segment reporting still differ. The major differences are in the segment definition, accounting policies, and disclosure of segment information. For example, segment definition is based on risk and return profiles along with internal reporting structure in IFRS, whereas it is based on internally reported operating segments in US GAAP.

Hidden Secrets of Zero-Balancing in the New G/L

Using document splitting with zero-balancing, the system posts additional line items so that the document is balanced for specific characteristics in addition to the document as a whole. The number of such additional zero-balancing clearing items depends on the number of unique characteristics in the document. Also, the system populates the partner characteristics to keep track of additional items with reference to unique characteristics.

Document splitting using zero-balancing in the new G/L ensures not only that the document is balanced, but also that the document is balanced for pre-defined characteristics. For example, you can configure a financial document so that it is balanced for the characteristic segment. You can pre-define the characteristics that you use for zero-balancing. In my examples, I use segments as the characteristic. A segment could be a line of business or a geographical location. You may need to ensure that your segments are zero-balanced to comply with International Accounting Standards Board regulations, and this process helps you report financial information by lines of business and/or geographical areas represented by segments.
In simple terms, when you perform document splitting using zero-balancing in the new G/L, the system posts additional zero-balancing clearing items so that the document is balanced for these characteristics. I’ll go through three examples to demonstrate some of the hidden secrets of how the system manages zero-balancing: one simple example to show you some of the basics, and then examples using three and four line items to show you how the system reacts to the different number of line items you may have. First I’ll start by going over some of the fundamentals of zero-balancing.

Migrating to the New General Ledger: A Three-Phase Approach

By selecting the option to upgrade to SAP’s new mySAP ERP General Ledger (G/L) structure, you must understand this is a full-blown consulting project, and it should be treated as such.

mySAP ERP 2005 comes with several new tools to help you migrate your financial records from the classic G/L structure to the new mySAP ERP G/L functionality. I’ll describe those tools and how they are used within the three-phase upgrade project you will need to execute. The migration tools, found in the 2005 IMG, consist of work lists, a migration plan, splitting simulation tools, and result reporting. The sidebar, “Upgrade Options,” has more information on your upgrade options by release.
When migrating to the new mySAP ERP G/L, keep in mind this important fact: The migration process is not just a plug-and-play modification that you can complete over a short period of time. This project requires several different project phases. Each phase — data migration, testing procedures, and final data certification — requires extensive planning, data verification, and final approval prior to beginning the next phase or completing the project

ARCHITECTURE OF THE NEW GENERAL LEDGER

2007-09-25T08:54:00.000-07:00

With releases of SAP enterprise resource planning (ERP) software up to and including SAP R/3 and SAP R/3 Enterprise software, companies would handle general-ledger accounting by using different SAP applications. Depending on specific company or industry requirements, or local accounting principles, you had to implement application components or functions that sometimes had their own user interfaces. For example, you might use special-purpose ledger software to meet certain reporting requirements – such as having totals in additional table fields. In addition, SAP profit-center accounting software resided in a separate application. Software for both the special-purpose ledger and profit-center accounting offered
certain functions that were not automatically reconciled with functions in the general-ledger accounting software.

Consequently, closing activities involved additional reconciliation effort. The new general ledger in mySAP ERP 2005 covers all these functions and requirements, but retains the familiar accounting interface – with its variety of services, such as currency translation – and continues to provide functions that support postings. Upstream software for sales and distribution and materials management works with the new general ledger in exactly the same way as before. Familiar and well-tested tables – BSEG, document table; BSIS, open items for new general-ledger accounts; and BSAS, cleared items for general-ledger accounts – are still part of the solution and form the database for many standard reports and customer-specific reports.
Users familiar with SAP R/3 will find a similar interface for the new general ledger. New general-ledger functions for financial allocation or statistical key figures, for example, share the same interface design as functions for controlling. The new general ledger offers the following technical advantages:
• The introduction and portrayal of business models now occurs within a single solution. This design avoids any need for a separate cost-of-sales ledger, special-purpose ledger, reconciliation ledger, or profit-center ledger.
• Users need to become familiar only with the interface and functions of one application. Users already familiar with SAP R/3 require little, if any, training.
• Data is stored only once in the system (in a single totals table) – eliminating data redundancy.
• No need for additional reconciliation activities during closing.
• It is now easier to make adjustments to business-specific requirements (such as the inclusion of customer fields as part of flexible reporting).

SAP Financials

2007-09-25T08:53:00.000-07:00

SAP Financials
It is a service that provides predictable financing. Being able to predict overall IT cost can help companies simply their budget. Other benefits of SAP Financials can include competitive finance rates, optimized cash flow and accelerated ROI. This service covers the entire SAP solution from hardware to implementation. this service give the entire information of the Company.

mySAP ERP Financials - New General Ledger
With the release of mySAP ERP, SAP introduced the New General Ledger (GL). The New GL contains a number of useful features including multiple ledger reporting and document splitting with all resulting data contained within the one module. The New GL also facilitates a faster closing process. In this online session, you will gain an understanding of the new features on offer and options for implementation.

New General Ledger (G/L) functionality

2007-09-25T08:47:00.000-07:00

Segment Reporting with the New General Ledger

One of the requirements of International Financial Reporting Standards (IFRS) is to report financial information by line of business and by geographical area, which is known as segment reporting compliance. It applies to enterprises whose equity or debt securities are publicly traded and to enterprises in the process of issuing securities to the public. Previous SAP releases contained various complex ways to provide this compliance, but the new General Ledger (G/L) available in mySAP ERP offers better quality and modeling of segment reporting.

Beginning with mySAP ERP 2004, SAP introduced new General Ledger (G/L) functionality. In this article, I'll explain the key differences between the new G/L and the classic G/L as well as the new G/L functions that support segment reporting. Subsequent articles will describe other new features, including parallel valuation supported with parallel ledgers and new processes that speed up your period-end closing.

I'll focus on the integration in the new G/L of functionality that used to be in separate ledgers. You can now use a new standard account assignment object called "segment" and new G/L functions to comply with the requirements of the internationally accepted accounting frameworks, such as International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP).

In spite of the convergence initiatives of the accounting frameworks, accounting practices using segment reporting still differ. The major differences are in the segment definition, accounting policies, and disclosure of segment information. For example, segment definition is based on risk and return profiles along with internal reporting structure in IFRS, whereas it is based on internally reported operating segments in US GAAP.

Hidden Secrets of Zero-Balancing in the New G/L

Using document splitting with zero-balancing, the system posts additional line items so that the document is balanced for specific characteristics in addition to the document as a whole. The number of such additional zero-balancing clearing items depends on the number of unique characteristics in the document. Also, the system populates the partner characteristics to keep track of additional items with reference to unique characteristics.

Document splitting using zero-balancing in the new G/L ensures not only that the document is balanced, but also that the document is balanced for pre-defined characteristics. For example, you can configure a financial document so that it is balanced for the characteristic segment. You can pre-define the characteristics that you use for zero-balancing. In my examples, I use segments as the characteristic. A segment could be a line of business or a geographical location. You may need to ensure that your segments are zero-balanced to comply with International Accounting Standards Board regulations, and this process helps you report financial information by lines of business and/or geographical areas represented by segments.

In simple terms, when you perform document splitting using zero-balancing in the new G/L, the system posts additional zero-balancing clearing items so that the document is balanced for these characteristics. I’ll go through three examples to demonstrate some of the hidden secrets of how the system manages zero-balancing: one simple example to show you some of the basics, and then examples using three and four line items to show you how the system reacts to the different number of line items you may have. First I’ll start by going over some of the fundamentals of zero-balancing.

Migrating to the New General Ledger: A Three-Phase Approach

By selecting the option to upgrade to SAP’s new mySAP ERP General Ledger (G/L) structure, you must understand this is a full-blownconsulting project, and it should be treated as such.

mySAP ERP 2005 comes with several new tools to help you migrate your financial records from the classic G/L structure to the new mySAP ERP G/L functionality. I’ll describe those tools and how they are used within the three-phase upgrade project you will need to execute. The migration tools, found in the 2005 IMG, consist of work lists, a migration plan, splitting simulation tools, and result reporting. The sidebar, “Upgrade Options,” has more information on your upgrade options by release.

When migrating to the new mySAP ERP G/L, keep in mind this important fact: The migration process is not just a plug-and-play modification that you can complete over a short period of time. This project requires several different project phases. Each phase — data migration, testing procedures, and final data certification — requires extensive planning, data verification, and final approval prior to beginning the next phase or completing the project.

History of sap

2007-09-25T07:38:00.000-07:00

From Start-Up Software Vendor to Global Market Leader
Over the course of three decades, SAP has evolved from a small, regional enterprise into a world-class international company. Today, SAP is the global market leader in collaborative, inter-enterprise business solutions. The company now employs more than 39,300 people, whose commitment and innovative spirit pace our future success.

The 1970s: A Real-Time Vision
In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther -- launch a company called Systems, Applications, and Products in Data Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing.
One year later, the first financial accounting software is complete, forming the basis for the continuous development of other software components in what later came to be known as the "R/1 system." "R" stands for real-time data processing.
By the end of the decade, intensive examination of SAP's IBM database and dialog control system leads to the birth of SAP R/2.

The 1980s: Rapid Growth
SAP moves into the company's first building on Max-Planck-Strasse in an industrial park in Walldorf, near Heidelberg. Our software development area and its 50 terminals are all now under one roof. Fifty of the 100 largest German industrial firms are already SAP customers.
The SAP R/2 system attains the high level of stability of the previous generation of programs. Keeping in mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies. With this and other innovations in SAP R/2, SAP sees rapid growth.
By the middle of the decade, SAP founds its first sales organization outside Germany, in Austria. The company makes its first appearance at the CeBIT computer fair in Hanover, Germany. Revenues reach DM 100 million (around $52 million), earlier than expected.
In August 1988, SAP GmbH becomes SAP AG. Starting on November 4, 1.2 million shares are listed on the Frankfurt and Stuttgart stock exchanges.
Germany's renowned business journal, manager magazine, names SAP its Company of the Year -- a distinction we would receive twice more in the next few years.
With the founding of subsidiaries in Denmark, Sweden, Italy, and the United States, SAP's international expansion takes a leap forward.

The 1990s: A New Approach to Software and Solutions
SAP R/3 is unleashed on the market. The client-server concept, uniform appearance of graphical interfaces, consistent use of relational databases, and the ability to run on computers from different vendors meets with overwhelming approval. With SAP R/3, SAP ushers in a new generation of enterprise software -- from mainframe computing to the three-tier architecture of database, application, and user interface. To this day, the client-server architecture is the standard in business software.
A growing number of subsidiaries are managed out of Walldorf. The new Sales and Development Center in Walldorf officially opens it doors. It symbolizes the global success of the company. In our twentieth year, our business outside Germany exceeds 50 percent of total sales for the first time.
By 1996, the company has earned 1,089 new SAP R/3 customers. At the end of the year, SAP R/3 has been installed in more than 9,000 systems worldwide.
SAP celebrates its twenty-fifth anniversary in 1997 and now employs approximately 12,900 people. We continue to strengthen our industry focus and build more and more industry-specific solutions. Henning Kagermann becomes Co-Chairman and CEO of SAP AG with Hasso Plattner. On August 3, 1998, the letters S-A-P appear for the first time on the Big Board at the New York Stock Exchange (NYSE), the largest stock exchange in the world.
As the decade draws to a close, Hasso Plattner, Co-Founder, Co-Chairman, and CEO announces the mySAP.com strategy, heralding the beginning of a new direction for the company and our product portfolio. mySAP.com links e-commerce solutions to existing ERP applications, using state-of-the-art Web technology.

The 2000s: Innovation for the New Millennium
With the Internet, the user becomes the focus of software applications. SAP develops SAP Workplace and paves the way for the idea of an enterprise portal and role-specific access to information.
Currently, more than 12 million users work each day with SAP solutions. There are now 121,000 installations worldwide, more than 1,500 SAP partners, over 25 industry-specific business solutions, and more than 41,200 customers in 120 countries. SAP is the world's third-largest independent software vendor.
Today, with enterprise services-oriented architecture and the underlying integration and application platform, SAP NetWeaver, SAP is providing our customers with solutions for end-to-end business processes. With SAP NetWeaver, your company can integrate people, information, and processes within the company and beyond.