SAP New GL (General Ledger)

The various functions of New GL are

• Document Splitting
• Real-time integration of Financial Accounting with Controlling
• Parallel Ledgers

SAP uses ledger accounting in new GL where the local ledger is called the leading ledger and the rest non leading ledger. Document splitting is a function of new gl where by the system ensures zero balance posting in segment/business area /profit center. This helps the company to have a trial balance even at profit center level

The new gl functionality is optional in ECC6 but is mandatory in Hana.

For example: If an Indian company is listed in India as well as in USA then the company has to submit financial statements both as per Indian GAAP (FY April to March) and as per US GAAP (FY Jan to Dec).

If new gl is enabled then the company can have all local transactions in the leading ledger(according to Indian GAAP) and a copy in the non-leading ledger as per requirements in that country(US GAAP)