Configure segment in the new GL

[Former Member]

Hi experts!

Somebody know which is the maximun segments I can have in the new GL?.

Is really necessary to configure in the NEW GL if I want IFRS.

best regards!

[Former Member]

I would say that new GL is required to implement IFRS cause as per IAS 14 and IFRS 8 operating segment is must.

You can have any number of segment as its required. Segments are derived form Profit center. At the same time you can use BA and PC as alternative for profit center.

[former_member588240]

>

> Hi experts!
> 
> Somebody know  which is the maximun segments I can have in the new GL?.
> 
> Is really necessary to configure in the NEW GL if I want IFRS.
> 
> best regards!

The segment is an organizational unit in the enterprise structure and you can have any number of segments.

For the purpose of IFRS, you need not necessarily configure New GL.

I worked in an IFRS assignment using Parallel Accounts approach.

[former_member188826]

Two broad approaches : Additional Accounts approach or Additional ledger approach.

For addressing IFRS needs, you could create unique additional GL accounts in your chart of accounts and manage all your IFRS relevant entries there. This could be simpler, but the chart of accounts could become messier.

For the later, newGL technology is ideal, have an additional ledger to sort out IFRS requirements. Easier for audit purposes. You can readily track IFRS specific entries and reconcile.

Segments are those, whose profits are monitored on a day to day basis by the Chief officer of the organization. It would be very minimal. It is defined in SAP as a division of a company for which you can create financial statements for external reporting.

[Former Member]

Dear Sridhar,

We r in ECC 6.0 with new gl activated with profit centre doc splitting.

Now we are using OL leading ledger for local IGAAP.

We want to create non leading ledger for IFRS.

Whether this is proper or any thing elese we need like to make IFRS as leading ledger. What needs to be done.

Regards,

Alok

[Former Member]

Right. There is a third approach - alternate account. When you create your accounts in the chart, you use the alternate account field to map to a second account, presumably in a second chart of accounts. You then create reports, that are keyed by the alternate account. In your case, the alternate account would be the one that complies with IFRS.

Before New GL, this was the primary way of complying with these types of requirements. However, with New GL, you can do document splitting and parallel ledgers, which means you don't have to resort to this old technique. But if you decide to skip New GL, you may have to go back to this old approach. It can be extremely cumbersome, but it does work.

[chandrasekharbadeti_chand]

Hi,

There is no Limit for Segments in New GL. User can create N no of Segments for his Segment Level Reporting.

Thanks

Chandra

[Former Member]

Hi,

As Greg has mentioned you may not need more than 5-10 segments for IFRS Reporting.

New GL is strictly not essential for IFRS Reporting,in sense,you may use SAP BI,SAP BObj tools for Reporting etc even without this.Nevertheless from the practical point of view the new GL provides you with functionalities like parallel ledger,segment and other IFRS centric Reporting.It has also some powerful features at the table level.

It wil be in wisdom to go for New GL if you want to pursue IFRS-this will make your life easier.

Regarsd

Ramesh

[Former Member]

no, it's not necessary. i wouldn't go over 5 segments for practical purposes and 10 if we assume that IFRS follows US GAAP. i am not aware of any technical limitations in ECC 6.0.