Enterprise Management Layer vs Cloud Best Practice

[Nigel_Grillet]

Hi all,

I'm so confused right now... I've been working on cloud (essentials) for over 5 years and we always use 0L for local ledger, 2L or 3L for Group Ledger. In our Cloud projects, we did make 2L/3L the leading ledgers.

Now, I'm doing an on-prem project, where we are contemplating using the "Enterprise Management Layer", and I find this SAP documentation where 2L is the local ledger, and 0L is the IFRS leading ledger.

Is this an error in the documentation or is SAP actually using the same codes for 2 best practices with opposite meaning? I'm very hesitant on using EML because of all the potential issues that can come from this in documentation and future products. 2022-01-10-11-32-30.png

What is going on here? Can someone explain this to me, please?

[OwenLiu]

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[Petra_Ohlinger · Accepted solution]

Hi Nigel,

I can answer your question on the enterprise management layer for SAP S/4HANA (Cloud, private edition and on premise) and hopefully lift the confusion.

Please also see my blog:

and the full set of documentation on the SAP Best Practices Explorer.

Indeed, we have changed the ledgers and accounting principles in the enterprise management layer in order to use them in a standardized way, i.e. how most customers have been using them in their ECC and SAP S/4HANA systems for many years (excluding in Cloud Essentials):

• 0L as the leading ledger representing the Group Accounting Principle (for example IFRS or US GAAP)
• 2 ledgers for local GAAP
• 2 ledgers for local tax requirements

Our documentation has been adapted accordingly, all business processes tested, and an additional test script describing parallel accounting in EML exists (AC01).

Please also note that customers have been using the enterprise management layer and its predecessors since 2012.

I hope you feel more confident about the enterprise management layer after reviewing above documentation (links).

Best regards,

Petra Ohlinger

[Nigel_Grillet · Accepted solution]

Thanks. That helps.

It's a bit disappointing SAP would use the same coding in opposite ways in products that should interact with each other in hybrid scenarios. They could have just used different ledger codes for Cloud (essentials) if aligning them was impossible. But ok, it is what it is.