Follow the menu path Financial Accounting > Financial Accounting Global Settings > Ledgers > Ledger > Define Settings for Ledgers and Currency Types, which shows a list of ledgers already in the system, as shown in the figure below. Now, let’s delve into the configuration for ledgers. Some countries are known to have complex local tax requirements, such as Russia and Brazil, among others, and for them, local tax ledgers are a must. Companies that will roll out to various markets would undoubtedly find that, at least in some countries, these ledgers will be required, so we recommend setting them up from the beginning and activating them only for the countries where they’re needed. In addition, a wise approach is to set up nonleading ledgers that represent local US GAAP and local tax rules for companies with significant international footprints. So, most big US companies opt for US GAAP for the leading ledger, then many of them have IFRS in a nonleading ledger. The leading ledger should represent the main accounting framework used by the group.įor most companies in Europe and other regions, that main accounting framework would be International Financial Reporting Standards (IFRS)-but in the United States, the main accounting rules are based on US Generally Accepted Accounting Principles (US GAAP). The accounting and taxation reporting requirements must be discussed in detail with the business. Most importantly, you must define which ledgers are required in your organization from the beginning subsequent introductions of ledgers can be complicated and will require additional effort. So, let’s examine how you can configure ledgers in SAP S/4HANA. With SAP S/4HANA Finance, nonleading ledgers are fully integrated and post in real time across all applications. For example, different special purpose ledgers were used to handle profit center accounting, consolidation, and funds management. In the old days, you would use a separate financial module called Special Purpose Ledger, which followed this concept of separate ledgers to store postings and data related to different accounting principles or purposes. Then, you can set up as many nonleading ledgers as required, to represent, for example, local accounting principles, local taxation rules, and so on. Ledgers in SAP S/4HANA are an area in the general ledger application that stores accounting documents based on different accounting principles.Īt a minimum, you’re required to have a leading ledger, which always is called 0L and which represents the main accounting principle from a group point of view.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |