What is the difference between extension ledger and non leading ledger?

What is the difference between extension ledger and non leading ledger?

Below are the key differences: The underlying Ledger for an Extension Ledger cannot be another Extension Ledger (it could be the Leading Ledger or a Non-Leading Ledger). Non-Leading Ledger is an underlying Ledger by itself. Custom Ledger Group can be defined for Non-Leading Ledgers but not for Extension Ledgers.

How do you assign a ledger group to depreciation?

Ledger group ‘X1’ is not allowed to contain the leading ledger when we specify X1 as target ledger group in depreciation area. To enable this setting, we have to select 1 in the field “Different Depreciation Area” in depreciation area 30 as shown in the above picture.

What is the difference between ledger and ledger Group?

So, a group is a collection of ledgers, which are similar in nature. These groups play a vital role in generating reports, which are both meaningful as well as compliant with laws. However grouping of ledgers is a post -accounting activity in a traditional (manual) Accounting.

What is parallel ledger accounting?

Parallel accounting enables valuation and closing transactions for a company code based on group accounting principles as well as additional accounting principles such as local accounting principles. To implement parallel accounting in your system, for example, you can use parallel ledgers.

What is SAP extension ledger?

What is an extension ledger? In SAP S/4HANA, we have a new type of ledger – an extension ledger. The postings to the underlying ledger also apply to the extension ledger. Anytime you report on the extension ledger, data from the underlying ledger are always accessed and displayed together with delta posting.

What is ledger in S4 Hana?

Concept of Extension Ledger in SAP S4 HANA Extension ledgers are one of the options that can be used for CO reporting. These ledgers staple on top of an Underlying Ledger ( Standard Ledgers – can be leading or Non-Leading Ledger ) As a result, there are no data duplications.

What is ledger approach and accounts approach in SAP?

Accounting-principle-specific documents are generated for each valuation. In the case of the ledger approach, these documents are posted to separate ledgers. In the case of the accounts approach, these documents are posted to parallel account sets within the same ledger of General Ledger Accounting.

How many types of ledger in S4 Hana?

2 types
There are 2 types of ledgers – leading ledger which is integrated with all subsidiary ledgers and controlling. Then you have parallel ledgers which are called non-leading ledgers. These parallel ledgers are always managed as complete ledgers.

What is parallel ledger in s4 Hana?

Using the parallel ledger, companies can set parallel valuation in different accounting principles. Typically, a local company that belongs to a group needs to follow both local and group accounting principles. In Assets accounting, we can set Parallel ledger accounting using depreciations areas.

What is parallel accounting in s4 Hana?

Purpose. You can portray parallel accounting in your SAP system. This enables you to perform valuations and closing operations for a company code according to the accounting principles of the group as well as other accounting principles, such as local accounting principles.

What is simulation ledger in S4 Hana?

Now, in S4HANA we have a better solution – the extension ledger. You can set up an extension ledgers, for example, to record: Internal Management reporting adjustments.

What is the target Ledger Group for Master depreciation area 01?

In the above step, we have specified ledger group ‘0L’ as target ledger group for master depreciation area 01 that means asset values of depreciation area 01 will be updated in leading ledger ‘0L’ in General Ledger Accounting. The ledger group which we assign to master area must contain leading ledger.

What is the GL code for parallel ledgers in asset accounting?

Parallel ledgers in Asset Accounting New GL Code: FAGL_FLEXGL_IMG Page 5 Posting control in depreciation area 30 should be set as “Area posts Depreciation Only”. We do not have to set up a separate set of GL accounts for this new depreciation areas 30. Instead we use the same set of GL accounts of the master depreciation area 01.

How to assign different accounting principle to a ledger and Ledger group?

Under the Parallel Accounting configuration, you can assign Accounting Principle to Ledger Group. Hence, you could (technically) assign different Accounting Principle to a Ledger and its Ledger Group. I think this needs to be manually managed till it is fixed in future versions of S4 HANA.

What is extension Ledger concept in SAP?

Concept of Extension Ledger. With SFin / S4 Finance, SAP has introduced a new Ledger concept – the Extension Ledger. There are now 4 types of Ledgers in S4 Finance: Leading Ledger: 0L is the “standard” Leading Ledger in a standard SAP system.