comparison parallel ledger app. with parallel account app. in terms of IFRS

[Former Member]

Hİ ALL,

we would like to know what is the advantages of using parallel ledger approach for transition to IFRS in SAP instead of using parallel account approach?

thanks in advance

[Former Member]

Hi,

Currently I am making a similar review - account based versus parallel ledger. The pro's of the of parallel ledger are the con's of account based and vice versa:

Parallel ledger - Pros

- G/L accounts: fewer G/L accounts required (so opportunity to reduce SCOA), same G/L accounts are shared across all ledgers - unified reporting

- Fiscal year variant: company codes with different fiscal year variants assigned to a separate ledger, facilitating consolidated reporting

- Posting period variant: postings to ledgers can be separately controlled by assigning a separate posting period variant for the ledger

- Carry forward: no need to maintain separate retained earnings accounts per accounting principle

- Currency valuations and translations: Automated postings updated to appropriate ledgers based on the assignment to relevant accounting principles

- Adjustment and value postings: Adjustment and value postings, such as reclassification are automatically posted to the appropriate ledgers

- Standard reports: standard reports are executed by ledger

Parallel ledger - Cons

- The data volume could increase as a result ofmaintaining parallel ledgers (see SAP note 820495 for tips on resolving the issue)

- Parallel ledger is a new concept at my customer so it requires a complete revamp of system configuation, with all the impact on processes and people, all old local reports (using special ledger) will become obsolete.

Hope this helps. By the way: we have chosen to move from account-based to parallel ledger despite the implementation effort.

Best regards,

Alexander Min

[Former Member]

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Edited by: sonhajj on Aug 24, 2011 5:41 AM