Parallel Accounting

[Former Member]

Hi,

we define accounting principle& after that we assign this principle to Ledger Group but where we define the rules of accounting principle, if we don't define then how system use accounting principles.

Thanks

[Former Member]

Hi,

Following configuration needs to be done in order to activate the parallel accounting for period end transactions like reclassify and sorting of receivables and payables and foreign currency valuation.

1. Configure valuation area

2. Configure accounting principle

3. Assign accounting principles to valuation areas

4. Assign accounting principles to ledgers.

Valuation area is one of the selection fields for the period-end transactions like reclassify & sorting of receivables/ payables, and foreign currency valuation. Valuation area derives accounting principle assigned to it in implementation guide. And accounting principle relates the valuation area to specific ledger assigned to the accounting principle. And hence, the system posts to the specific ledger derived from the Valuation Area --> Accounting Principle --> Ledgers

Hope this helps.

Regards,

Chirag

[Former Member]

The ledger identifies the accounting princples. Based on accounting princple, you decide whether certain entries are posted in all the ledgers or only in specific ledgers.

For example you need to make some entries for local reporting, then you can post these entries for the local reporting ledgers. Another example is Forex valuation. You can have different Forex valuation methods based on the reporting requirements and post it to different ledgers. This is what we call as accounting principles.