New GL vs Business Areas

Hi
We are currently on version 4.7c and have not activated business areas. There is a requirement from our Finance users to activate Business Areas now since some statutory reporting requires us to generate Locationwise Trial Balance in system. At present without business areas, we can only generate Company Level Trial Balance. We cannot use Profit Centre Accounting as we have not mapped Profit Centres to locations but they are mapped to the various brands that we have.
A lot of FI consultants have told us that we will be able to generate a location-wise TB using the NEW GL functionality in ECC 6.0 - can any of you give your views on whether we will be able to achieve this functionality with New GL without needing to activate Business Areas.
Thanks in advance.
Shobhana.

hi
General Ledger Accounting (FI-GL) (New)
The central task of G/L accounting is to provide a comprehensive picture of external accounting and accounts. Recording all business transactions (primary postings as well as settlements from internal accounting) in a software system that is fully integrated with all the other operational areas of a company ensures that the accounting data is always complete and accurate.
Beyond fulfilling the legal requirements, General Ledger Accounting also fulfills other requirements for modern accounting:
- Parallel Accounting
General Ledger Accounting allows you to perform parallel accounting by managing several parallel ledgers for different accounting principles.
- Integration of Legal and Management Reporting
In General Ledger Accounting, you can perform internal management reporting in parallel with legal reporting. For this purpose, the Profit Center Accounting functions are integrated with General Ledger Accounting. Furthermore, you can generate financial statements for any dimension (such as profit center).
- Segment Reporting
General Ledger Accounting supports the segment reports required by the accounting principles IFRS (International Financial Reporting Standards) and US GAAP (Generally Accepted Accounting Principles). For this purpose, General Ledger Accounting contains the Segment dimension.
- Cost of Sales Accounting
You can perform cost of sales accounting in General Ledger Accounting. For this purpose, General Ledger Accounting contains the Functional Area dimension.
Features
General Ledger Accounting comprises the following functions for entering and evaluating posting data:
- Choice between group level or company level
- Automatic and simultaneous posting of all subledger items in the appropriate general ledger accounts (reconciliation accounts)
- Simultaneous updating of the parallel general ledgers and of the cost accounting areas
- Real-time evaluation of and reporting on current posting data, in the form of account displays, financial statements with different balance sheet versions, and additional analyses.
In this way, General Ledger Accounting automatically serves as a complete record of all business transactions. It is the central and up-to-date component for reporting. Individual transactions can be checked at any time in real time by displaying the original documents, line items, and monthly debits and credits at various levels such as:
- Account information
- Journals
- Totals/transaction figures
- Balance sheet/profit and loss evaluations
However, SAP still offers to choose between the New GL and the old Classic GL way of accounting.
There are certain limitations in the new GL and clients are adopting to the new gl concept.
New GL configs
If you are having multiple company codes in US / Europe - using multiple ledgers (leading and non leading) will be very helpful for reporting purposes like US GAAP / IAS / regulatory requirements of Europe etc.
Once you activate the New GL - a new nodes will be populated in SPRO. In the New GL configuration you can configure the ledgers etc.
Further, is it a new implementation or migrating to higher version from an existing version of SAP. If you are migrating from an exisitng SAP system - the process to be adopted will be different.
I am summarizing a few points on New GL:
1. New GL needs to be activated in IMG.
2. When Client chooses to implement New GL and if it activated new IMG and transactions are added to the menu path.
3. New GL has to be implemented for all Company Codes in an environment. It cannot be implemented for specific Company Codes.
4. Segments are a new concept in my SAP ERP. Segment and Partner Segment are created.
5. It is a unified world u2013 all the ledgers are at one place. In the classic system u2013 normal Ledger for GL, COGS, PCA Ledger SL etc are all separate.
6. Scenario: Term used with my SAP ERP 2004: identifies the fields that are updated. Eg. Profit Center Scenario.
7. If the New GL is activated u2013 Programs SAPF180 and SAPF181 are no longer there.
8. There is scope to use both old and the new GL. In such case all the Transactions will be available in the menu bar.
9. Summary Table: FAGLFLEXT.
10. Classic GL (GLT0) >> New GL activation (FAGL_ACTIVATION)
11. One version of the truth is stored in GL (Same valuation, No inconsistency, No reconciliation)
12. Supports different reporting purposes: (Legal reporting, Segment Reporting, Management Reporting).
13. Multi Dimensional analysis u2013 Account analysis, Drill down reporting etc.
14. Option to add Industry specific / Customer defined fields.
15. Meets International requirements. Supports simple cost accounting via distribution and assessment in GL.
16. Assignment to leading ledger:
FIN_CCA (Cost Center Update)
FIN_CONS (Preparation for Consolidation)
FIN_GSBER (Business Area Update).
FIN_PCA (Profit Center Update)
FIN_SEGM (Update of Segment)
FIN_UKV (Cost of Sales Accounting)
One Ledger is assigned the role of Leading Ledger and all Company Codes are automatically assigned to this Ledger. Group Accounting is mapped to this Ledger. Asset accounting and Controlling are posted to leading ledger.
Additional Ledgers are created for parallel reporting. Additional local currency to non leading ledger. Alternate fiscal year variants can be assigned. Assignment of scenarios.
Data Structures for New GL:
Document Header: BKPF
Affecting Leading Ledger: BSEG.
Affect only additional ledgers: BSEG_ADD.
Open Items remain unchanged. BSIK, BSIS, BSID, BSAK, BSAS, BSAD
Totals Table GLT0 is omitted.
Split Line Items/ Split Totals FAGLFLEXA/FAGLFLEXT
New Tables are FAGLFLEXA/FAGLFLEXT. Existing documents in BKPF/BSEG are used as basis for new Tables. During migration, document splitting is carried out according to Customizing.
Initially during migration no data will get posted to BSED_ADD.
for Business area configs ...see below link
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIBUSI/FIBUSI.pdf
nagesh.

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Hello,
I want to discuss with you about Business area so let is go:
Business areas are primarily used to facilitate external segment reporting across company codes
So from this sentences it is mean that you can assign more than one company code to one business area and there is another thing, that Business is defined on the Client Level not on the Company Code level.
There is another useful task from Business are that you can create Financial statement on the Business area level BUT
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Dear Sohail Rahman,
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Message was edited by:
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Dear All,
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HI ,
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Edited by: Ling Gao on Nov 10, 2008 9:11 PM

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[Business Area|http://help.sap.com/printdocu/core/Print46c/en/data/pdf/FIBUSI/FIBUSI.pdf]
[Business Area-|http://www.sap-basis-abap.com/sapfi003.htm]
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