Streamline Your Parallel Accounting with the New G/L Ledger Solution

  • by Aylin Korkmaz, Manager, Accenture UK
  • April 15, 2006
See how to set up parallel accounting with the ledger solution in the new G/L with three procedures: ledger definition, currency valuation, and asset accounting.
Key Concept

Many international companies are subject to several sets of laws requiring them to issue multiple consolidated financial statements according to various accounting standards. In Europe, all publicly traded companies must submit their consolidated financial statements according to the International Financial Reporting Standards (IFRS), in addition to the country-specific local legal accounting standards. Meanwhile, companies listed in the United States or belonging to a US group must also comply with US Generally Accepted Accounting Principles (GAAP) accounting standards. Parallel accounting means that postings and financial statement reports are made separately and simultaneously in accordance with all required accounting standards.

The need to provide parallel financial statements to meet the requirements of inter-national accounting standards is growing with the continued globalization of capital markets. Previous SAP releases provided methods to support parallel accounting, but mySAP ERP offers a new approach to help companies reduce the complexity of parallel accounting. The new general ledger (G/L) solution available with mySAP ERP 2004 onward gives you the ability to keep parallel ledgers simultaneously in the new G/L according to different accounting standards. This new method is called the ledger solution.

I’m going to discuss the use of the new G/L ledger solution to model parallel accounting and give examples of how it works. As I explained in my article “Simplify Segment Reporting with the New General Ledger” (SAP Financials Expert, November/December 2005), the new G/L introduced the concept of leading and non-leading ledgers, which are both used to produce financial statements.

Aylin Korkmaz

Aylin Korkmaz is a manager in Accenture’s Global Energy practice specializing in finance streamlining and management reporting. She has seven years of experience working in global multi-stream projects containing challenging business process designs and change management issues. Aylin has deep process architecture and design skills, and is one of Accenture’s leading practitioners in the area of Financial and Strategic Enterprise Management modules. She has led design and configuration teams within complex SAP solution environments and delivered cutting-edge finance and business intelligence solutions.

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