Category: GL

SAP GL Document Splitting Part I

As alluded to in my last post, the document splitter plays a crucial part in the derivation of profit center and consequently in the preparation of management financial statements. Now we’ll start to take a deep dive into document splitting. There are two prerequisites for using the splitter. First, the NewGL must be active in […]

Profit Center Derivation in SAP

In a ‘normal’ SAP organization structure in the NewGL, the profit center in SAP is the smallest level in which P&L and Balance Sheets can be created for a management entity. Deriving the profit center in SAP is a complicated process. It’s critical to consider the sources of GL postings and how each of those […]

The three toughest items in the SAP GL for finance users

SAP GL is notoriously difficult to learn, but once users become adept, they begin to appreciate the data model and consistency of transactions. With that said, the learning curve is still quite steep. When preparing a PowerPoint deck for an informative presentation on profit center derivation, I realized how much consultants ask of their users. […]

Performing GL Conversions (part III)

In the previous two articles on SAP GL conversions, we discussed the process of GL conversions, journal entry flows, and how to handle reconciliation accounts. In this final article, we’ll look at a couple pain points and keys to success that arise in SAP GL conversions. Currencies In the GL, there is usually more than one currency […]

Performing GL Conversions Correctly (part II)

In my previous post, I discussed the basic process for performing GL conversion. In this post, we’ll turn it up a notch and explore the basic journal entry flow as well as examine a few cases of how to handle subledger accounts such as the AP and AR reconciliation accounts. Journal Entry Flow One of the defining features […]

Performing GL Conversions Correctly (part I)

GL Conversion Process (ETL)

It amazes me that GL conversions go so wrong so often. The recipe is straightforward and if the legacy data is good enough, there is rarely an excuse to have trouble during GL conversions. Yet, I’ve seen quite a few go off track. So in this series of posts, I’d like to talk about the […]

Currencies in SAP FI

Currency Types in SAP FI

Understanding currency types in SAP FI is critical for both users and consultants. If a user does not understand the currency types, then they will book entries wrong. If the consultant does not understand them, then serious valuation problems can result. Consider the following: We have a Mexico affiliate of a US corporation that is […]