New GL & New asset accounting for S/4 HANA Finance

New GL & New asset accounting for S/4 HANA Finance

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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