Get Your SAP General Ledger Terminology Right

  • by Mitresh Kundalia, Director — SAP Practice, Quality Systems & Software
  • August 14, 2009
With the onset of SAP General Ledger, it is important to become familiar with a number of terms, vocabulary, and buzz words.
Key Concept

SAP introduced a new module commonly known as the new General Ledger with SAP ERP Central Component (ECC) 5.0 and further enhanced it in SAP ECC 6.0. It is now known as SAP General Ledger, while the former version of it is known as the classic General Ledger (classic G/L). It brings a large number of new features and benefits, such as:

  • Document splitting to meet segment reporting requirements

  • Standardization of international accounting principles

  • Parallel accounting using parallel ledgers or parallel accounts
Whenever new SAP functionality appears, new terminology comes along with it. This is true of SAP General Ledger, formerly known as the new General Ledger, available in SAP ERP Central Component (ECC) 5.0 systems and higher. Some of the terms introduced are confusing and often the same term can mean two things. Based on my experience working with many SAP General Ledger implementation and migration projects, I have found that many in the SAP community still find some of these terms confusing or think of the context differently. I’ll cover some of the most commonly misunderstood and confusing terms in the SAP General Ledger world. The idea is to get the terminology right — so that everyone knows the exact same meaning.

Mitresh Kundalia

Mitresh Kundalia heads the SAP practice at Quality Systems & Software ( QS&S is a leading business and technology consulting firm that specializes in delivering superior IT solutions using SAP products. Mitresh is widely acknowledged as a leading SAP expert and has worked on various SAP assignments, including strategic planning, fresh implementations, upgrades, and post-go-live support projects. With an MBA degree in finance, Mitresh manages SAP projects with a special focus on customer-focused solutions, management reporting, profitability analysis, SAP General Ledger, and business intelligence. He is a regular contributor at SAP events and publications and technical advisor to leading journals.

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