Parallel ledger configuaration for IFRS

Hi Guru,
Well I have to Implement IFRS for my canadian client using Parallel Ledger configuaration for this.
If anybody have any configuaration notes in this matter or the way I have to move forward for this.
Thanks in advance
Rahul

Hi,
You have to create a non-leading ledger for IFRS compliance.
1. Create a non leading ledger
2. define and activate non-leading ledger
3. Define the Accounting Principles of this non-leading ledger example
4. Assign this Acctg Principle to Non-leading ledger
5. Define doc types and number range for GL view
After you have established this, the system will simultaneously post to the non-leading ledger... and you can also create the particular financial statement for IFRS reporting. To adjust a particular ACCOUNT to comply with the IFRS adjustments, you can directly adjust them in the non-leading ledger without affecting the original books using FB50L.

Similar Messages

  • Parallel Accounting Method for IFRS

    Hello all,
    My company would like to explore the parallel accounting method for IFRS. Currently we are on ECC 6.0 with classic GL.
    Currently we have both US GAAP and local GAAP reporting running in the same ledger. We use a similar method (setting up additional H accounts which are used in local GAAP reporting only) to segregate local GAAP from US GAAP as recommended by SAP.
    We set up 2 different depreciation areas: 01 (post to US GAAP accounts) and 02 (post to local GAAP accounts). The problem we ran into at year-end is pertaining to Retained Earnings. Because this a complete replacement method (US GAAP reporting will ignore all the H accounts which are set up for local GAAP and visa versa), we can't simply roll all the P/L accounts into one Retained Earnings account. We have to set up 3 Retained Earnings account (one for US GAAP only accounts, one for common accounts and another one for local GAAP accounts).
    If we add IFRS into the mix, we will need to set up even more Retained Earnings accounts which is not ideal. Also, we plan on including more countries into our SAP environment which requires us to generate additional local GAAP reporting. So my thinking is that this will become very hard to manage.
    Also, this method will fall apart if the common accounts are not the same for any of the reporting requirement (e.g. common accounts for US GAAP and local GAAP are different than IFRS).
    My understanding is there are 2 ways to handle parallel accounting: replacement (which is what we are current using) or adjustment methods. Instead of completely replacing the US GAAP accounts, the adjustment method is to post the delta to the additional accounts.
    My question is:
    1. Giving current situation of my company, what is the best method to handle IFRS and also implement additional local GAAP reporting in the same environment?
    2. What is the best practice to handle parallel accounting method? Replacement or adjustment method?
    3. Since I'm already in the replacement method, can I easily switch to the adjustment method?
    Any guidance will be greatly appreciated.
    Regards,
    Cassandra Wong

    Cassandra,
    Check out this blog which has info and process map for parallel accounting. Theer's also a link for a recent SAP webinar about how we implemented parallel reporting for our own use.
    http://www.sdn.sap.com/irj/scn/weblogs;jsessionid=(J2EE3417400)ID2115139750DB10714505287783485243End?blog=/pub/wlg/15679
    siva
    Edited by: Siva Darivemula on Sep 25, 2009 7:37 PM

  • Comparison parallel ledger app. with parallel account app. in terms of IFRS

    Hİ ALL,
    we would like to know what is the advantages of using parallel ledger approach for transition to IFRS in SAP instead of using parallel account approach?
    thanks in advance

    Hi,
    Currently I am making a similar review - account based versus parallel ledger. The pro's of the of parallel ledger are the con's of account based and vice versa:
    Parallel ledger - Pros
    - G/L accounts: fewer G/L accounts required (so opportunity to reduce SCOA), same G/L accounts are shared across all ledgers - unified reporting
    - Fiscal year variant: company codes with different fiscal year variants assigned to a separate ledger, facilitating consolidated reporting
    - Posting period variant: postings to ledgers can be separately controlled by assigning a separate posting period variant for the ledger
    - Carry forward: no need to maintain separate retained earnings accounts per accounting principle
    - Currency valuations and translations: Automated postings updated to appropriate ledgers based on the assignment to relevant accounting principles
    - Adjustment and value postings: Adjustment and value postings, such as reclassification are automatically posted to the appropriate ledgers
    - Standard reports: standard reports are executed by ledger
    Parallel ledger - Cons
    - The data volume could increase as a result ofmaintaining parallel ledgers (see SAP note 820495 for tips on resolving the issue)
    - Parallel ledger is a new concept at my customer so it requires a complete revamp of system configuation, with all the impact on processes and people, all old local reports (using special ledger) will become obsolete.
    Hope this helps. By the way: we have chosen to move from account-based to parallel ledger despite the implementation effort.
    Best regards,
    Alexander Min

  • Ledger specific transactions to be maintained for IFRS reporting

    HI
    We are involved in the implementation process and need to maintain the leading ledger as per US GAAP and also the ledger required for IFRS reporting. What will be the ledger specific transactions? Sharing same COA, do we need additianl account groups to identify them seperately or what is the procedure? Can a comparison report be generated?Also how is the material ledger maintained?
    Please Help V_Shekhar

    Hi,
    Pls Check this thread
    [leading ledger and non-leading ledger|leading ledger and non-leading ledger]
    Check this links
    [http://sapfico-answers.blogspot.com/2010/02/sap-ecc-60-new-new-gl.html|http://sapfico-answers.blogspot.com/2010/02/sap-ecc-60-new-new-gl.html]
    Hope this will Help you!!

  • 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.

  • Parallel ledger with values for past period

    hi
    we are creating addl ledgers with different fiscal year variant
    is it possible for me to fill up this ledger with values for a past period?
    my fiscal year variant is V3 April - March, however I need the parallel ledger for calender year Fiscal Yr Variant K4.
    Going live with this in april is it possible to populate this ledger with values for jan-march period
    regards
    sameer

    HI,
    I am not sure if it is helpful but what you can do is to define an asset movement type limited to a valuation area, which allows you to post for example acquisitions only in on valuation area, but not in the other one.
    Thus you can post ABSO with one asset movement type for one valuation area (APC-value X) for another valuation area use another movement type and post APC value Y.
    Anyway the difference of the APC value (thats not ativated) needs to be posted to an P&L account.
    Maybe there are other/better suggestions from other people.
    Best regards, Christian

  • Additional Non-Leading Ledger for IFRS implementation

    Hi
    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.

  • Parallel ledger for tax purposes

    Dear SAPiens,
    I heard an idea from a client: to use a parallel ledger in newGL for profit tax purposes, i.e. to record taxable revenues and deductible expenses in a ledger dedicated for tax purposes, to make it easy to determine the base of profit tax.
    Does anyone have experience with such a use of parallel ledgers? Could it work and make sense?

    HI,
    Please assing the company code ato Paralle ledger.
    SPRO/FA/****/ledgers/ledger/define and active non-leading ledger.
    Reg
    Madhu M

  • Customisation Document for New Parallel Ledger

    Hello,
    Does anyone has the customisation document on New parallel ledger and Parallel ledger.
    Thanks & Regards,
    Harish

    Hi,
    what is the intention for having 1:1 document numbers in different Valuation Areas? Imagine, it is very likely, that you have different number of flows (e.g. having only FX-valuation in VA 001 but FX & Title-valuation in VA 002) which - as a consequence - results in a deviation of document-# in FI.
    As you have a drilldown-possibility into FI in TPM13 & TPM20, in my eyes there is no real need (...and in praxis no real chance) to keep posting documents 1:1 across VAs.
    Regards,
    Lorenz

  • Document No. in parallel Ledger

    Hi,
    We use parallel ledger in TRM and create two valuation area 001 and 002 for IGAAP and IFRS. We Initialization of Parallel ledger.
    We post both valuation area for accounting but system pickup diff. number range as per valuation area. My document type same use TR for accounting.
    How to use same number range and same number generate in both valuation area?
    Regards,
    Vishal Patel

    Hi,
    what is the intention for having 1:1 document numbers in different Valuation Areas? Imagine, it is very likely, that you have different number of flows (e.g. having only FX-valuation in VA 001 but FX & Title-valuation in VA 002) which - as a consequence - results in a deviation of document-# in FI.
    As you have a drilldown-possibility into FI in TPM13 & TPM20, in my eyes there is no real need (...and in praxis no real chance) to keep posting documents 1:1 across VAs.
    Regards,
    Lorenz

  • Parallel ledger - activation

    Hello,
    we have new General Ledger (ECC 5.0) for two years. During this year we decided to use paralel ledger for IAS / IFRS purposes from 1.1.2007 backwards.
    We have activated the additional parallel ledger according to SAP documentation. Now we need the balances and open items for all accounts, but we can´t find the way. In customizing are the tools which ask for migration plan. The migration plan is possible to create only for data migration from classic GL into new GL. We tried to find some solution within OSS, but notes describe the problems which appear during data migration from classic to new GL.
    I would like to ask you if it is possible to create parallel ledger during the year ? How we can fill new parallel ledger with balances of accounts from previous year and periods for year 2007?
    Has anybody with this any experience or do you have any new documentation ?
    thanks in advance
    dana schlachtova

    Paralle ledger activation in the middle of the year is very dangerous for the previously posted open items.
    At the time of clearing system try to post the entries in the parallel ledgers. But parallel ledger not available in the previous postings.
    It will result adverse results in most of the transactions.Please check and take necessary action

  • Parallel Ledger Depreciation area

    Dear all,
    I have 2 depreaciation areas one for local GAAP and other for IFRS . The amount to be capitalised will be differenent in each area in some circumtances.
    In ECC 6.0 the parallel ledger book value area will take APC values from book value area 01.
    I created a separate do type AP with external numbering, ut unable ti hit the parallel area with direct postings.
    For ex; amount to be capitalised in area 01 is 10000 whereas it is 12000 in area 32 , parallel book value area.
    Could anyone please suggest how to go about this?
    Thanks,
    vamsi

    Hi Mamta,
    Thanks for the reply. I have done all the necessary config settings like creation of parallel depn areas and a separate doc type for ledger entry view etc.
    Now my question how do I post the additions / adjustments in book value only to Parallel ledger area.
    For ex: area 01- book depn
               area  30- parallel depn area
               area  60 - delata for 30 and 01
    create a new doc type called Zafor entry view
    Intilly booked book value fo 1200 in all ledgers. But in area 60 i.e parallel ledger book value area I need to capitalise an additional amount of 200. How do I do this? what is the T.code ,  is it ASKb?
    I need to post an amount to the asset only in parallel ledger. i we use FB01L system doesnt allow you to do subledger postings.
    hope I am clear with my question.
    Thanks,
    Vamsi

  • Parallel Ledger in "New Ledger"

    Hi,
    In the new ledger we have the facility of posting to a parallel ledger,by way of non-leading ledgers
    We maintain this parallel ledger to meet a specific accounting principle,say,US GAAP,IFRS etc.
    In IMG we define the "Accounting Principles"  and assign them to the ledger groups.
    Once done the system posts the documents to this particular non leading ledger.
    My question is:
    Every accounting standard has its own peculiar accounting treatment in terms of valuation etc.How does the system understand these priniciples and standards and treat them accordingly?
    For example, i configure IFRS as a non leading ledger.
    IFRS has its own peculiar set of accounting principles.
    How does the system appreciate,understand these principles and treat them?
    In other words i would like to know if the database of these "accounting principles"are defaulted in the system or Do we need to default them?
    Pl.reply me specific to the question.I dont want any help on menu path,config.etc.I have already done this.
    Thanks.
    Regards.
    Ramesh

    Hello Ramaswamy,
    The very precise answer to ur question is as following.
    if the database of these "accounting principles"are defaulted in the system? No
    Do we need to default them? Yes
    In IMG when u define the accounting principles and assign it to ledger groups it is only the skelton u define where in additionally the database is required to be put specific to the defined accounting principles.
    To give u an analogy I can sya that it similar to defining Financial statement version to some extent.
    Hope this helps.
    Rgds
    Manish

  • How to correct an acquisition posting in an parallel ledger

    Hello,
    I have the following situation:
    We are using New GL concept and have setup one parallel ledger (16)
    We have setup two depreciation areas, one pointing to the 0L, the other one to parallel ledger
    During vendor posting  of an asset the capitalisation is done in both ledgers posting to the capex balance sheet account (standard behavior).  For reasons the customer wants to  redraw the capitalisation but only in the parallel ledger, he wants to post it as costs ( P&L account)instead of the balance sheet account.
    Whats the best approach here?
    Many thanks

    Hi You Need to define following settings:
    Assign Depreciation Area to your Parallel Ledger i.e. Non Leading Ledger
    SPRO>IMGFinancial Accounting (New)> Asset Accounting> Valuation>Depreciation Areas>Define Depreciation Areas
    The GL Column will be 3 and Target Grp will be 16 in your case
    Now Create a new Transaction Type which will be copy of your 101 and restrict this Transaction type for your Depreciation Area whihc is specific to your non leading ledger.
    Now post ABSO and ASKBN
    Please let me know if you face any issues.
    Regards,
    Vivek

  • Parallel ledger - posting in one ledger only - Open Item managed account

    Hello all,
    We have a requirement which necessitates posting some entries in one ledger only for the purpose of complying with more than one GAAP. (US GAAP and local GAAP).  However we understand that such postings cannot be made to GL accounts which are open item managed.
    Is there any workaround for this?  How do we get around this?
    Regards
    Sukumar

    Hi Sukumar,
    According to my understanding, directly postings to GLs is possible in case of 'Open Items Managed' GLs. To ensure parallel accounting with different GAAPs, you must have defined Leading & Non-leading Ledgers. You can pass entries directly to Non-Leading Ledgers to ensure compliance with the relevant A/cing stds.
    Regards,
    Amish.

Maybe you are looking for