Basic Challenges in Migrating to New GL
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Transcript of Basic Challenges in Migrating to New GL
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Cogent IBS Inc. 2009. All Rights reserved.Cogent IBS Inc. 2009. All Rights reserved.1
Cogent IBS Inc. 2009. All Rights reserved.
Basic Challenges in migrating toNew GL
Geetha Balakrishnan
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Cogent IBS Inc. 2009. All Rights reserved.
Session Summary
o! The purpose of this session is to give an overview of New GL andalso to give basic steps in the migration process
o! This session will also focus on the challenges you may have to faceduring the migration process
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What we will cover
" ! Overview of General Ledger" ! Migration to New General Ledger" ! Role of Cogent" ! Case Study with our current implementation" ! Challenges Faced" ! Tips and Tricks" ! Pitfalls to avoid" ! Wrap Up" ! Session Takeaways
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General Ledger
What is General Ledger ?
o! The general ledger is the core of any companys financial records.These constitute the center books of companys system, and every
transaction flows through the general ledger. These records remainas a permanent track of the history of all financial transactions
since day one of the life of the company
o! The two primary financial documents of any company are theirbalance sheet and the profit and loss statement, and both of theseare drawn directly from the companys general ledger
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IFRS
Why New General Ledger ?
o! US Sec has proposed IFRS cutover from local GAAP to IFRS is2014
o! IFRS stands for International Financial Accounting Standardso! International standard for financial accounting and reporting
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Paths to IFRS
o! SAP Recommended Approaches to achieve IFRS!! Account based!! New GL Parallel Ledger!!
Business Objects!! International standard for financial accounting and reporting
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Paths to IFRS
o! Account Based!! Easiest to implement!! Can lead to un-manageable COA in SAP General Ledger!!
Maintenance intensive!! Reporting changes!! Longer closing processes
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Paths to IFRS
o! New GL Parallel Ledger!! Transparent Approach!! Independent set of books!!
Provides IFRS and local accounting standard!! Business Object!! Financial consolidation and Reporting Solutions!! Consolidation level
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Features of New GL
o! Segment reporting!! The report of income statement and balance sheet to be reported by
segment is a legal requirement. The big change in segment reporting isthat there is now a separate field in profit center master record.
o! Document Splitting!! It allows full financial statement to be produced at a level lower than the
company code. Also line items can be split by profit center, segments,functional areas, commitments items, funds, funds program and grants.Separate activation is required
o! Parallel Ledgers!!With the globalization of many organization there is an increase
requirement to produce parallel sets of financial statements
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Advantages of New GL
o! Faster Period End Closingo! Real time posting to CO to FI no longer at period endo! Legal and Mgt. reporting are unified in one ledgero! Higher ROI on your investmento! Balanced books by any dimensiono! TCP Reductiono! Transparency for drilldown reportingo! Legal Entity Reporting
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Cogent IBS Inc. 2009. All Rights reserved.Cogent IBS Inc. 2009. All Rights reserved.52!
About Cogent IBS, Inc.
Cogent Integrated Business Solutions, Inc. is an SAP focused consulting services company based
out of Bingham Farms, Michigan, USA.CogSAP09 is a Cogent IBS, Inc. professional development event conducted exclusively for itsemployees.
No part of this presentation may be published or transmitted in any form without the express permission of Cogent IBS, Inc.
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