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  1. 1. Parallel Accounting

Parallel Accounting: The ‘Parallel Accounting’ in SAP is achieved by storing and posting data in various ‘accounting principal’ in separate ledgers, with the data for one accounting principle stored in the G/L (leading ledger) as the ‘leading’ valuation view. Additional ledgers (non-leading ledgers) are used for each of the (parallel) accounting principles.

                The advantages are:

  • No additional G/L account are required
  • Each accounting principle is maintained in a separate ledger
  • Different fiscal year variant can be used
  • Ability to make use of the standard reporting functionality for bringing out financial statements under this customizing step, the following activities are carried out:
  • Define accounting principles: The required accounting principles, as decided by the local and group statutory reporting, are defined
  • Assign ‘ledger groups’ to accounting principles
  1. 1.1 Define Accounting Principles

How to configure

Transaction Code

SPRO

Menu Path

IMG-Financial Accounting (New)-Financial Accounting Global Setting (New)-Ledgers-Parallel Accounting-Define Accounting Principles

Create new entries by clicking on New Entries. On the ‘New Entries: Overview of Added Entries’ screen creates the required accounting principles.

  1. Accounting Principles: Enter an identifier for the accounting principles. We will use ‘IAS’, ‘GAAP’ and ‘LOGA’ to denote the various accounting principles.
  2. Name/ Description of Accounting Principles: An appropriate description is entered in this field against the accounting principle identifier entered in above.

Save the configuration once it is completed.

  1. 1.2 Assign accounting principles to Ledger Group

How to configure

Transaction Code

SPRO

Menu Path

IMG-Financial Accounting (New)-Financial Accounting Global Setting (New)-Ledgers-Parallel Accounting-Assign Accounting Principles to ledge group

  • On the ‘Change View “Assignment of Accounting Principles to Target Ledger Group”: Overview’ screen, create new entries by clicking on New Entries.
  1. Accounting Principle: Select the accounting principle from the drop-down list.
  2. Target Ledger Group: Select the appropriate ledger group to be tagged to the accounting printiple selected in (1) above.
  3. Description: The system brings up the description of the ledger group.
  • (ii) Save the entries.
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