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 (www.QSandS.com), a consulting firm specializing in SAP S/4HANA, SAP General Ledger, and complex System Landscape Optimization (SLO)-type reorganizations. Mitresh is widely acknowledged as a leading SAP expert, with multiple publications and an SAP-PRESS book to his credit. He has published more than 50 peer-reviewed articles and white papers, and he has given presentations at various SAP conferences and events. Mitresh is the chief solutions architect of General Ledger Migration Optimizer (GLMO), a leading product to accelerate and jump-start the SAP S/4HANA and SAP General Ledger initiatives; SAP Data Reorganization Optimizer (SDRO), an SLO-type product for managing complex system landscape reorganizations; and Group Currency Activation and Conversion (GCAC), a product suite to manage introduction of parallel currencies and conversion of data in a live SAP system. 

Mitresh will be presenting at the upcoming SAPinsider Financials 2018 conference February 12-15, 2018, in Las Vegas. For information on the event, click here

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