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wat is the leading and non leading ledgerrs in NEW G/L concept.

wat is the leading and non leading ledgerrs in NEW G/L concept.

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 08, 2008 at 11:00 AM

    Hai

    If a company has 2 branches one in india and one in usa.The fiscal year for both india and usa will be different ie..,india will be apr-mar and usa will be jan to dec.If you want to maintain both the accouting books same time then we cn do it thru leading ledger and nonleading ledger.

    The accounting books which you will maintain in india (head office) will be a leading ledger

    The accounting books which you will maintain in usa (branch) will be a nonleading ledger.

    Regards

    Raghavendra.M

    SAP-Practice

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  • author's profile photo Former Member
    Former Member
    Posted on Jul 08, 2008 at 11:20 AM

    Hi,

    A ledger is a section of a database table. A ledger only contains those dimensions of the totals table that the ledger is based on and that are required for reporting.

    Leading ledger

    The leading ledger is based on the same accounting principle as that of the consolidated financial statements.

    If you use the account approach for parallel accounting, you post all data to the leading ledger.

    This leading ledger is integrated with all subsidiary ledgers and is updated in all company codes. This means that it is automatically assigned to all company codes.

    In each company code, the leading ledger receives exactly the same settings that apply to that company code: the currencies, the fiscal year variant, and the variant of the posting periods. You can define a second and third parallel currency for your leading ledger for each company code. In Customizing for Financial Accounting (New), choose Financial Accounting Global Settings (New) ® Ledgers ® Ledgers ® Define Currencies of Leading Ledger.

    · Non-leading ledger

    The non-leading ledgers are parallel ledgers to the leading ledger. They can be based on a local accounting principle, for example. You have to activate a non-leading ledger for the individual company codes.

    Posting procedures with subledger or G/L accounts managed on an open item basis always affect all ledgers. This means that you cannot perform ledger-specific postings to subledger or G/L accounts managed on an open item basis. If you manage G/L accounts on an open item basis to monitor accounting aspects such as reserve allocations and reversals, you need to take additional measures in your internal controls system.

    Non-leading ledgers can have different fiscal year variants and different posting period variants per company code to the leading ledger of this company code. The second and third currency of the non-leading ledger must be a currency that is managed as second or third currency in the respective company code. However, you do not have to have a second and third currency in the parallel ledgers; these are optional. Alternative currencies are not possible.

    Hope this helps. Please assign points and let me know if you need anything specific.

    Rgds

    Manish

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