Function of non leading ledger

Question

Hi
I am booking expenses in one company code and for management reporting distributing to another company code by cost centre distribution. During this process system is creating cross company code accounting document which we want to avoid.
I heard that we can not avoid cross company code transaction. But instead of posting entries into leading ledger, system can post these cross company code transaction into non leading ledger during cost centre distribution.
Is it possible? If yes, please guide me how. If not possible, any other way to achieve above result?
Following components are active in my system:-
1.Profit centre accounting
2.New GL functionality
3.FICO reconciliation
Please revert.
Regards
DD

Answer 1

Hi,
There is exactly only one leading ledger at client level. SAP Provides Leading Ledger with Standard System. Only the leading ledger passes and posts values to CO in the standard system. The Leading ledger manages additional currencies, Fiscal Year Variant and Posting Period Variant that are assigned to the company code. ONe are more SAP delivered scenarios(Cost Center/Business Area/Segment Update) are to leading ledger. These scenarios are updated in corresponding General Ledger view duriing the document posting.
In addition to the leading ledger, you can also define other, non-leading ledgers that are assigned currencies and/or fiscal year variants that differ from the leading ledger. Multiple/non-leading ledgers are useful for portraying accounting in accordance with different accounting principles(ex. Local and Tax accounting principles). It is not necessary to define Non-Leading ledgers even if you have it is not necessary to assign scenarios(mentioned earlier) to Non-Leading Ledgers.
Regards,
Krishna Kishore