This blog aims to guide the SAP Recommendation for assigning Corporate Accounting Principles to the Ledgers for SAP S/4HANA Cloud, public edition (Public Cloud), explain each scenario, the future impacts if the recommendation is not followed, and when it is possible to change the Corporate Accounting Principal assignment.
In the blog SAP S/4HANA Cloud, public edition: Options for Accounting Principles and Ledgers, you can find all the details to define how many ledgers you need to enable in your system and the available scenarios.
However, when the customer and partners activate a non-leading ledger to assign the Corporate Accounting Principle (scope item 1GA for IFRS or/and 2VA for USGP), it is essential to follow the SAP Recommendations in the SAP Help portal's Ledger scenarios: Choosing the right combination for your business needs.
Below, I am going to mention the scenarios available with Corporate Accounting Principles (Accounting Principles):
Scenario: IFRS and Local Accounting
- Scope item activated: J58 - Local Accounting and 1GA - IFRS
- SAP Recommendation:
- Ledger 0L (leading ledger) is assigned with the local accounting principle by default. Please change the assignment to the corporate accounting principle IFRS for this ledger.
- Ledger 2L (non-leading ledger) is assigned by default to the corporate accounting principle IFRS. Please assign the local accounting principle to this ledger instead to correct this.
- Example of Ledger level:
- Example of Company Code level:
Scenario: US-GAAP and Local Accounting
- Scope item activated: J58 - Local Accounting and 2VA - US-GAAP (USGP)
- SAP Recommendation:
- Ledger 0L (leading ledger) is assigned with the local accounting principle by default. Please change the assignment to the corporate accounting principle USGP for this ledger.
- Ledger 3L (non-leading ledger) is assigned by default to the corporate accounting principle USGP. Please assign the local accounting principle to this ledger instead to correct this.
- Example of Ledger level:
- Example of Company Code level:
Scenario: IFRS, US-GAAP and Local Accounting
- Scope item activated: J58 - Local Accounting, 1GA - IFRS and 2VA - US-GAAP
- SAP Recommendation:
- Ledger 0L (leading ledger) is assigned with the local accounting principle by default. Please change the assignment to the corporate accounting principle IFRS for this ledger.
- Ledger 2L (non-leading ledger) is assigned by default to the corporate accounting principle IFRS. Please assign the local accounting principle to this ledger instead to correct this.
- Ledger 3L (non-leading ledger) is assigned by default to the corporate accounting principle USGP.
- Example:
Future impacts:
If the configuration does not follow the recommended settings for their assignment of the Accounting Principles to Ledgers:
- The future impacts when don't have one ledger at the Company Code Level (any ledger in blank), they could:
- Not able to assign a different Accounting Principle to Company Codes in New countries
- Nor able to enable the Tax Depreciation area 15 for Fixed Assets
- If the customer is not planning to use Fixed Assets or expand to additional countries, the update is (still recommended but) not strictly necessary.
- Not able to use deviating Fiscal Year Variant in the future.
Example of this case:
The future impact when the leading ledger does not have assigned the Accounting Principle:
- Not able to use deviating Fiscal Year Variant in the future.
- Example of this case:
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It is possible to change the Accounting Principle when:
- No postings have been made using any company code in General Ledger Accounting.
- If postings were made in a system other than your production (P) system, you can delete these by using the Reset Transaction Data job from the Schedule Accounting Data Changes app.
Please read the information in the following links before executing the Reset Transaction Data job:
Blog:
SAP Help Portal:
- SAP Managed Tags:
