Ask the FI/CO Expert: What Are the "Line Item Display" and the "Only Balances in Local Currency" G/L Master Data Checkboxes Really Doing?

  • by Kurt Goldsmith, Senior Business Consultant, Enowa Consulting
  • October 15, 2002
Two seemingly innocent checkbox items might have negative long-term consequences if you don't understand the questions they actually represent.

The master data for your G/L account numbers offers you several checkbox options. Of these, two seem particularly innocent and friendly. Line item display is the first. Only balances in local currency is the second. Yes or no, on or off? The screenprint in Figure 1 shows both fields. If only all of R/3 customization offered such simple decision variables!

But maybe the impact of those two checkboxes is not so obvious. Could the wording of the field names mislead the "yes vs. no" decision maker? Perhaps the consequences of "yes vs. no" do not even show up until a few years after your site has been using SAP R/3.

As a quantity of more than 1,000 individual G/L accounts in an organization’s chart of accounts list is not uncommon, these two checkboxes represent more than 2,000 decisions that somebody has to make during the original cutover project. That is about 1,998 too many. Almost every project that I was on in the 1990s relied on rules of thumb for those decisions. Now, almost the year 2003, is it time to revisit that approach?

Some FI/CO Expert readers already know the answer, because you’ve sent me multiple e-mail messages on this subject, wondering if it had been a mistake to go with rule-of-thumb decisions, such as those in Figure 2, all these years.

Kurt Goldsmith

Kurt Goldsmith is a senior business consultant for Enowa Consulting, specializing in the diagnosis and resolution of productivity-related integration issues between a company’s division of labor (end users, managers, executives) and SAP software (R/3, BW, APO, CRM). He also has a lifetime performance record of one win and two third-place finishes from five career starts as a thoroughbred racehorse trainer.

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Comments

1/13/2014 1:23:24 PM
Anonymous

It would be nice if you can layout the impact if the Only Bal in LC" check on on OI managed accounts and clearing and Fgn currency revaluation. Noticed that clearing is not performed on txn/local currencies. How to fix this?

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