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Oct 05, 2020 at 12:25 PM

Parallel accounting using parallel ledger

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Dear Experts,

Please provide your valuable inputs, currently our financial system has only leading ledger with assigned accounting principle P1, now we want to implement accounting principle P2 for that we are thinking to activate non-leading ledger(1L).

The planned process and system setup is as below:

Activation of 1L is in mid FY.2021

0L will be assigned with P2

1L will be assigned with P1.

GL migration from 0L to 1L will be done in mid of 2021 as we are unable to do at end of FY, both ledgers will have P1 entries.

P1 entries continue to post to both ledgers until end of FY2021 as P2 entries only starts in FY2022.

From FY2022, P2 entries will be posted to 0L and P1 will be posted to 1L

Is there any issue if 0L logs P1 entries until end FY2021 and switches to P2 from FY2022?

is it mandatory to start posting only relevant accounting principle(P2) entries to lead ledger immediately after GL migration?

Please advise.

Thanks.