IFRS as a Leading ledger

Hi All
We want to implement for an Indian retail company having H.O in Italy.
THe client wants to use leading ledger as IFRS and non leading ledger for Indian GAAP.
For leading ledger we are planning to use fiscal year from Jan_ Dec and for Indian Apr_ Mar.
Leading ledger currency as Euro and non leading as INR.
My legal and local reporting is in India.
Can anybody help me in knowing the pros and cons for using Indian GAAPS as non leading ledger.
Thanks
Ajay Gupta.

Hi,
There is no clear answer for this question. Because the decisions vary by country, industry and customer situation(current GL version and customer plans on migrating to new GL).
If your configuration meets the below requirements......
Leading ledger to report IFRS and dereciation area 01 linked to leading ledger.
Non leading ledger report to local gaap(Indian GAAP) and deprecaition area 02 linked to Non leading ledger.
Merits:
Simple setup from the implementation date.
IFRS in place in LL and asset area 01 from implementation date.
No need for system landscape optimization(SLO)asset area conversion project.
No migration of data or manual adjustments within LL.
Controlling data will be recorded according to IFRS standards.
Cons....
IFRS skills sets and knowledge must be applied during initial configuration.
Initial IFRS configuration must be correct because it is very difficult to change settings after implementation date.
Regards,
Krishna Kishore

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Posting overhead expenses in country specific Non leading ledger only

Overhead expenses pertaining to the consturction of Fixed assets need to be be capitalised as per Indian Accounting standards. But at the same time according to IFRS standards the Overhead capitalisation is not acceptable. I want to know whether there is any kind of trasaction or customisation to post these overhead expenses such that they appear only in leading ledger and the Non leading ledger of Country specific only and not in IFRS set non leading ledger.

The forum [FPM - General|Enterprise Performance Management (SAP EPM); in which you originally posted your question deals mainly with the financial performance applications otherwise known as Enterprise Performance Management (EPM) carrying the BusinessObjects brand. Your question pertains to SAP [ERP Financials|SAP ERP Financials; which is covered by another forum. Therefore your message has been moved. Please adjust any bookmarks you might have and post to the appropriate area in the future, that way you are assured you will have the right audience reading your posts.
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[Jeffrey Holdeman|http://wiki.sdn.sap.com/wiki/display/profile/Jeffrey+Holdeman]
SAP Labs, LLC
BusinessObjects Division
Americas Customer Solutions Adoption (CSA) team

Activation of new Non leading ledger for IFRS- Challanges involved

HI
Good Day. I am requesting this qwery on behalf of my company. We are working on SAP ECC 6.0 and the New G/L functionality is activated and additional non leding ledger have been defined for IFRS reporting for some of the company codes rolled out subesequently.
Duriing the implementation , IFRS ledger was not defined for some of the company codes at that point of time. Is it feasible to define the Non leading ledger for IFRS reports now.
If it is possible, how to migrate the opening balance to this ledger. What are the other challanges involved, if we activate the non leading ledger now.
Thanks in advance for your guidance.
Regards.
S K Patra

You want to assign an additional ledger to a company code later on in General Ledger Accounting (new). You have to utlize the functions that are provided by the SAP General Ledger Migration Service.
This falls under Scenario 7: Subsequent implementation of an additional ledger
You need to consider this as a separate project and must prepare and execute this project with the utmost care to ensure accounting is still in order following the activation.
You have to structure accounts and already posted line items of the subsequently implemented ledger, in addition to
consistently changing various interdependent Customizing settings (for example, for General Ledger Accounting and Asset Accounting). SAP provides only a technical migration
Please refer to note 1227504.

Additional Non-Leading Ledger for IFRS implementation

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My client wants to implement IFRS accounting wef 1 April. They already have couple of non-Leading Ledgers operational. Please confirm if the creation of a new non-Leading Ledger for IFRS would serve the purpose. Is it in anyway different from creation of other non-Leading Ledgers for US-GAAP, UK-GAAP ? Also, I would like to know what are all the points to be taken care of while implementing IFRS accounting standard.
Any documentation which would augment for the IFRS implementation in SAP will be of help.
Thank you
RK

Hi Ravi,
Iam not sure about your question but can you tell me what are the activities you carry out now for non-leading ledgers..Do you need to carry out month end closing for that non-leading ledger also???
Thanks,
sai.

How to post a acquisition entry in Dep area 30 (for Non Leading ledger)

How to post a acquisition entry in Dep area 30 (for Non Leading ledger N1)
In our scenario, following configuring is being set up:
1 Book depreciation IAS/IFRS 1 0L
30 LOCAL 3 N1
51 Property Tax 0
60 DELTA 6 N1

Hi Saurabh,
Create a new custom transaction type by coping existing TTYPE 100 and restrict the transaction type which allow posting for dep.area 30 and do posting in FB01L by selecting ledger group.
Regards,
Mukthar

Profti Center Determination for Non Leading Ledger

Hi,
We are on ECC6, EHP4. We have activated non leadgin ledger and I am facing issue in asset accounting transaction type for Write up, I have created for Non leading ledger (IFRS) . Following is the issue.
I have created the transaction type "Z71" and attached it to the "IFRS " depreication area. Whenever I post the write up entry and process it from "ASKB" with transaction type "Z71"I get the error "Balancing Field Profit Center in line item 001 not filled." Whenever I use transaction type which posts to both the ledger, entry gets posted correctly without any error.
What could be the issue, am I missing sometihing in configuration?
Please advise
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Dear shilesh,
were you maintain profit center in Define document splitting characteristics for general leadger account
Pls reply me
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shankar

How to clear the open item for non-leading ledger?

Hi, Experts,
I have two valuation area VA001 and VA004 and two accouting principle GAAP and IFRS.
Then I assign VA001 to GAAP (post to leading ledger) and VA004 assgin to IFRS (Post to non-leading ledger "IF").
There are two ledger group ,one is 0L and the other is IF.
When i run TBB1, system generate 2 FI documentes.
Then I run F13E to clear the GL account, because some GL is open item management.
But only ledger 0L is cleared, the other non-leading ledger "IF" is not cleared.
I don't know is there any possiblity that system will clear open item for leading ledger and non-leading ledger together?
TKS a lot.

Hi Louise,
you do posting in TRM, but clearing is done in FI, so I moved the thread.
BR, Tomislav

Parallel accounting cost objects in non leading ledger

Hi Gurus,
I have implemented parallel accounting and have my leading ledger in INR and the non leading leading ledger in USD.
also i have the FI profit center and segment activated and for segmental reporting i am using the same.
I now need to report on segments in the non leading ledger also.
can i transfer the account assignments (like profit center and segment) to the non leading ledgers also.
Points will be awarded
regards

I've tried it.
It works properly.
I created a movement type for Area 30 Only.
Anyway I had to modifyT093A: 30 IAS Depreciation Area now has '00' in filed WRTAFB."Adoption of values from depreciation area" like the Area 01.
I have to capitalize values (also negative; correction) only in Area 30 (IAS), not also in Area 01 (APC zero value).
There's no other way to obtain that?
Depreciation Area 01 (master area) 30 (IFRS)
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Choosing the leading ledger-non-leading ledger

Hi,
I am in a regional project in southamerica. We are goning to use New GL. We are going to have different companies for each country. The chart of account is going to be one which is usefull for all country (it has different group account for each country), we are also going to have a group chart of account for statement balance sheet. We have to report abroad by USGAAP, but locally by other rules. In the distant future we think to use consolidation.
We are going to define the leading ledger and the non leading ledger, but we have the following problems:
-Which one should be the leading ledger (USGAAP or local rules), because I need many reports for two rules.
-What should I consider for this decision?
-In case I choose the USGAAP as leading ledger, what functionality I am going to loose for local report, (inflation, some report, asset accounting (I need more than one depreciation area for local rules and in some countries the functionality of inflation, etc).
Thanks,
Cecilia

Hi,
I suggest to have leading ledger following group GAAP (inyour case US-GAAP, often IFRS). The number of reports does not affect this decision from my point of view as its the same, no matter which ledger is the leading one...
I am not familiar with inflation accounting but using asset accounting with derived depreciation area(s) which post the difference of (real-time) US-GAAP area (posted to all ledgers) and your local depr. area (to the ledger group needed) should work fine.
Set the derived depr. as a "real area" as a derived area does not provide the full (balance sheet) account determination functionality...
best regards, Christian

Choosing the leading ledger- non leading ledger New GL

Hi,
I am in a regional project in southamerica. We are goning to use New GL. We are going to have different companies for each country. The chart of account is going to be one which is usefull for all country (it has different group account for each country), we are also going to have a group chart of account for statement balance sheet. We have to report abroad by USGAAP, but locally by other rules. In the distant future we think to use consolidation.
We are going to define the leading ledger and the non leading ledger, but we have the following problems:
-Which one should be the leading ledger (USGAAP or local rules), because I need many reports for two rules.
-What should I consider for this decision?
-In case I choose the USGAAP as leading ledger, what functionality I am going to loose for local report, (inflation, some report, asset accounting (I need more than one depreciation area for local rules and in some countries the functionality of inflation, etc).
Thanks,
Cecilia
Edited by: Cecilia Penelas on Dec 6, 2010 6:18 PM

Hi,
I suggest to have leading ledger following group GAAP (inyour case US-GAAP, often IFRS). The number of reports does not affect this decision from my point of view as its the same, no matter which ledger is the leading one...
I am not familiar with inflation accounting but using asset accounting with derived depreciation area(s) which post the difference of (real-time) US-GAAP area (posted to all ledgers) and your local depr. area (to the ledger group needed) should work fine.
Set the derived depr. as a "real area" as a derived area does not provide the full (balance sheet) account determination functionality...
best regards, Christian

Tax Date Based Non Leading Ledger BS, TB and PnL

Hi Gurus
In our scenario, we will be using the Leading Ledger for Accrual Accounting, while the Non Leading Ledger will be used for Cash Accounting. It is required, for management effectiveness to capture transactions on accrual basis (leading ledger), but as far as tax reporting is concerned, it will be on cash basis (non leading ledger).
Scenario is:
Vendor Invoice comes on Jul 1, 2009 with terms of payment as say 45 days. The due date is mid August. In accrual (Leading Ledger) accounting, we will book the invoice on Jul 1, 2009 (posting date) with 45 days credit period, and due date as Aug 14, 2009. Now, as per cash accounting (Non Leading Ledger) we should only book this invoice on Aug 14, 2009,when the cash outflow will take place. However, since in New GL posting automatically happens for Leading and Non Leading ledgers, the NL document also will have the same posting date as LL document (Jul 1, 2009). The TDS/ Service Tax etc. however will be deducted only on payment, in August, which is a different fiscal period (as well as different tax reporting period).
My question is, is there a way to use TAX DATE or some other date field for Non Leading Ledger, and have the tax reports generated on that basis? Mind you, the purpose of cash accounting is for statutory and tax purposes. So we need to be able to draw financial statements based on cash accounting.
Would greately apprecaite if any of you can help me guide to a possible solution. I have the following options:
1 - Create a report that will use (somehow) a logic to capture the transactions based on tax date
2 - Find a User Exit to capture the actual cash flow date and use it to generate the tax/ statutory reports
3 - Use Tax Date field to store the cash flow date and use it to generate the tax/ statutory reports
Any suggestions welcome!
Regards
Mandar

Hi,
using different ledgers for parallel accounting ( eg IFRS, US-GAAP, Indian-GAAP...) is not a matter of tax procedure assigned to a country and company code(s) assigned to a country.
The tax law for a country/tax jurisdiction code does not depend on which reporting standard you use (IFRS, US-GAAP, Indian-GAAP...).
Best regards, Christian

Subsequent Activation of Non Leading Ledger

Dear Experts,
We are now in 6.0 version of SAP with New GL and Profit Centre Document Splittings. Our Leading Ledger is for Local Indina GAAP. Now we want to create new non leading ledger for IFRS.
Whether we will take help of SAP for migration of old account balances beacuse we will create non leading ledger on 01.06.10 and we went go live on 01.02.2008.
Or we should take help of any consulting firm for implemnentation as we know any how for balance transfer to non leading ledger SAP migration tool to be used.
Please help.
Regards,
Alok

Hi,
Many different migration scenarios are imaginable for the transition from classic General
Ledger Accounting to new General Ledger Accounting, ranging from the straightforward
merge of existing ledgers to a totally new conception of accounting, such as the introduction
of segment reporting for compliance with new accounting principles. In particular in the case
of a new conception of accounting, there are two aspects to the transition to new General
Ledger Accounting: firstly, a conceptual business part, and secondly, a technical part dealing
with the migration of the existing accounting data to the new structures for General Ledger
Accounting.
The new features relate to very extensive changes, the transition to new General Ledger
Accounting is very complex, and the data volume involved is not to be underestimated. A
comprehensive analysis of your situation at the outset and the detailed planning of the
migration are crucial to the success of the migration.
We therefore recommend setting up an individual project for the migration,
entailing project phases, milestones, and so forth, and taking the appropriate
steps to ensure sufficient testing and training.
To achieve a high degree of safety in this respect, SAP accompanies each migration project
with the SAP General Ledger Migration Service. This mandatory technical service relates to
the standard migration scenarios and contains a scenario-specific General Ledger Migration
Cockpit and service sessions to ensure the quality of the data and of the migration project.
The service sessions are performed by the General Ledger Migration Back Office that has
been set up especially for this purpose.
Hence please contact SAP consulting for this Activity...
Regards
Manu
SAP GD

Difference in ABST2 in non leading ledger for 2nd LC AA and 2nd LC GL

Hi,
While executing ABST2 there is difference in our non leading ledger ,we have recently created new dep. area 33 which updates the values in 2nd LC AA for non leading ledger but value in 2nd LC GL is different from what we have in Asset for non leading ledger Z1 .
When we check in FAGLL03 for Z1 ledger we came to know that Asset balance is updated from Local currency and GL values are updated from 2nd Local currency ,but in 2nd Local currency system has not post any entry and due to this there is difference.
We want the same value in non leading ledger Z1 for 2nd LC AA and 2nd LC GL.
Please let me know if there is any specefic settings required for the same.
We have mantain dep area 34 also as per SAP Note 1433535 but still there is difference in ABST2.
Thanks
Akshata

Hello Akshata,
If you want to setup a scenario in Fixed Asset Accounting, where
you post different valuations (local GAAP / IFRS) to a different ledger
group in G/L for parallel valuation, then you have to use (in total) 3
depreciation areas in the following way. For each additional "valuation"
for which you have additional ledgers defined in G/L, and for which you
want to get different values as those posted in area 01, you need also
two additional depreciation areas (1 real and and 1 derived area) in
asset accounting.
Please consider a correct definition of a parallel ledger scenario
is as follow: this is an example only
                           Posting to G/L         Ledger
Area 01 HGB                        1                   0L    > STATUTORY
Area XX IAS                          3                   LG    > (IAS)
Area YY (IAS - HGB)             5 or 6              LG    > (IAS)
Acquisition/transf/retirement postings in area 01 go to all ledgers
independently of your setting in OADB. And, if any difference occurs
between area 01 an area XX this is posted trough the derived area YY
(posting indicator 6).
This is the parallel ledger scenario logic and how the techinal
solution to this requirement was developped.
You can find more documentation about the so-called "Ledger Scenario" in
Asset Accounting for the purpose of parallel valuation in the SAP Help
Portal. You may find these links helpful:
a) Parallel Accounting in Asset Accounting
http://help.sap.com/erp2005_ehp_04/helpdata/EN/91/09f5400e517e7fe1000000
0a1550b0/content.htm
b) Parallel Valuation
http://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/71ea61448011d189f000
00e81ddfac/content.htm
c) Making Settings for Parallel Ledgers in FI-AA
     > this one documents my above explanation
http://help.sap.com/erp2005_ehp_04/helpdata/EN/0d/de3d83c78b48a28a44ad92
14239d57/content.htm
d) Example: Parallel Accounting and the Derived Depreciation Area
     > this one describes how the derived area acts in the scenario
http://help.sap.com/erp2005_ehp_04/helpdata/EN/37/ebad814b3347e9bc5182c0
56d5bbd8/content.htm
kind regards
Ray

Automatic AP/ AR posting with different amount in Non-Leading Ledger

Dear All,
We have leading ledger for local GAAP and Non leading for IFRS. Is there any configuration/ mechanism to post a AP/ AR document with relevant amount in the Non-Leading Ledger based on the a/cing standards described by relevant standard.
I am aware of autoamtion in posting the documents of depreciation, foreign currency valuation, accrual/ deferrals. I want to know settings for automating the entry in non-leading ledger based on the standard.
Thanks,
Amish.

Hi,
If you want to post additional amounts ,adjustments, modifcations to non leading ledgers you can use FB01L and give your non leading ledger while posting. System post documents only in Non leading ledger.

Posting of values in non leading ledger

Hello,
I had created two ledger on is leading and other is non-leading for IFRS and leading for local.
How the posting values get automatically get transferred to nonleading ledger if i do the posting through FB50L in leading ledger.
This is for IFRS reporting.
suggest

Dear Prem,
If u do transactions using other than FB50L t-code then, there is no selection of ledger. What ever ent done in Leading ledger will automatically flow to Non -Leading LEdger(IFRS).
When you use FB50L and select Non Leding Ledger the entries will be posted to IFRS ledger only. Nothing posting will happen to leading ledger that ie your local gap.
Regards,
Alok

IFRS as a Leading ledger

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