We are using classical GL and classical asset accounting in ECC and we want to Migrate from existing ECC system to S/4 HANA Finance.

Generally a question arise that I am migrating to New GL with S/4 HANA Finance then why should I run a seperate project. Here is the answer to this question.

In S/4 HANA Finance new asset accounting is must to use and for new asset accounting it is must to use New G/L. So how we can handle new GL in S/4 HANA Finance without proper migration from classical GL to New GL while migrating from ECC using classical GL to S/4 HANA Finance.

SAP has given 2 option for this scenario

1. Migrate from classical GL to New GL.
2. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance.

So what is difference in both.

1. Migration from classical GL to New GL: This migration should be done as separate project and should be executed before migration to S/4 HANA Finance. With this migration new functionality get introduced like:

  • Document Splitting
  • Balance Sheets at the Profit Center Level
  • Parallel Accounting
  • Segment Reporting
  • Ledger Approach for Parallel Accounting
  • Custom field

2. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance.
For sake of migration to S/4 HANA Finance we activate New GL and this provide us minimal functionality of New GL. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance does not support major functionalities likes

  • Document Splitting
  • Balance Sheets at the Profit Center Level
  • Migration from Special Purpose Ledger to New General Ledger Accounting
  • Parallel Accounting
  • Segment Reporting
  • Ledger Approach for Parallel Accounting
  • custom field

We should migrate to New GL as separate project if we want character wise balance sheet. This migration can be done before migrating to S/4 HANA Finance or after migrating to S/4 HANA Finance but required separate project.

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19 Comments

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  1. Sanil Bhandari

    Just a few updates:

    1. Once you migrate to S/4HANA Finance from classical GL, you cannot activate a new parallel ledger. However, at the start of new year, you can definitely create a new parallel ledger, but without old transaction data.Technically that is possible and so goes for ledger as well. Eg, you are on US GAAP today at the time of conversion, than after one year you can still implement IFRS, but the old data will not come in IFRS. It will have data going forward.

    2.  Special ledger will continue to work the way it would have worked in Classical GL.

    3. If you have custom fields as a coding block, it will work the same way in S/4HANA Finance as well.

    Regards

    Sanil Bhandari

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  2. Sanil Bhandari

    Hi

    Technically you have New GL if you have migrate from Classical GL to S/4HANA Finance. However, features like Document Splitting, Parallel Ledger for old transactional data etc is not available. If you want to use the same, first migrate to New GL and than to S/4HANA Finance. In the roadmap discussions at TechEd this year in Bangalore, we were informed that SAP might come up with a SLT Solution to Document splitting etc in 1709, in case you migrate from Classical GL to S/4HANA, but currently the same is not supported

    Regards

    Sanil

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  3. RAJ KUMAR Post author

     

    Hello Zeeshan,

    As Mr. Sanil mentioned technically yes. New GL need to be activated for S/4 HANA FInance migration but as you are moving from classical GL to S/4 HANA FInance it is activated with minimal functionality.

    Regrading document splitting & Segment reporting in this case I will say that you will not be able to take advanctage of same.

    Now CO>FI integration part: I will say it is removed in S/4 HANA Finance as all entry saved in Sinlge table that is Universl general so even if you migrate from New GL to S/4 HANA this settings will not be required in S/4 HANA Finance.

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  4. Sven Fahn

    Dear all,
    as part of upcoming S/HANA 1610 we expect a new solution so called “Accounting – Further Accounting Principle” on which we had a collaboration together with SAP. This might include further capabilities in terms of subsequent implementation of a further accounting principle, e.g. additional predefined configuration, data transfer into target ledger / depreciation area, etc..
    A transformation from classic GL to NewGL including usage of functionalities within S/4HANA might be a bit more predefined then, let´s see.
    KR
    Sven
     

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  5. Paul Waite

    Hi Raj,

    Thanks for posting this. We are in the same situation (we are using Classic GL and Classic Asset Accounting in ECC6 EHP6) and we want to perform a direct conversion to S/4HANA. It looks like Option 2 would apply to us – but what is the impact of running RASFIN_MIGR_PRECHECK in this context?

    Thanks,

    Paul

     

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