Difference between Leading ledger and Non-Leading ledger

Dear,

Please remember following...

1. Leading ledger is a parent ledger which means non leading ledger derives all value from the leading ledger like parallel currencies, posting and all.

2. All documents posted in leading ledgers automatically flowed to the non leading ledger but not the vice versa.

3. When you post document for non leading ledger you will have to mention Ledger but not in the case when you post for leading ledger.

4. Leading ledger is the Primary ledger whereas non leading ledger is secondary one.

Regards,

Chintan Joshi.

This concept is introduced in SAP Ecc6.0

Many companies have to maintain books for more than two fiscal years (For example 31st December as per companies act & 31st March as per income tax Act).

So leading ledger & non leading concept helps in maintianing same.

Leading Ledger is the ledger in which all the entries are posted originally. From Leading ledger all entries flow into non keading ledger. You need not pass entries seprately in leading or non leading ledger.

In case your leading ledger is Jan to December, January will be the 1st period & so on.

In case your non leading ledger is April to March, April will be 1st period.

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

The non-leading ledgers are parallel ledgers to the leading ledger. They can be based for example on local accounting principles

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 currencies, FYV and posting periods. You can define a second and third parallel currency for your leading ledger for each company code.

Non-leading ledgers are parallel ledgers to the leading ledger. They can be based on a local accounting principle of a country, ex: You have to activate a non-leading ledger for the individual company codes.

Regards

Hi,

Leading ledger

1.It is a base ledger, which updates the cost center and consolidation.

2.You can define only one ledger as the leading ledger u2013 SAP provides the leading ledger "0L".

3.The currency of the leading ledger is always used as the first currency.

4.The leading ledger is integrated with all subsidiary ledgers.

5.Only the values from the leading ledger are sent to CO.

6.The leading area in Asset Accounting (depreciation area 01) must be posted to the leading ledger.

7.Leading ledger uses the (additional) local currencies assigned to the company code.

8.Leading ledger uses the GL Total Table: FAGLFLEXT.

Non-leading ledgers

1.Non-leading ledgers are activated by company code.

2.You can define additional currencies that deviate from those used by the leading ledger.

3.As a second and third currency of a non-leading ledger, you may only use currency types that you have already assigned to the relevant company code for the leading ledger.

4.You can define a fiscal year variant that differs from the leading ledger. If you don't specify a FYV, the FYV of the company code is automatically used.

5.You can also define a posting period variant that differs from the leading ledger.

6.Separate document types and number ranges can be defined for non-leading ledgers by users, to ensure continuity in ledger numbering.

7.Non-leading ledger updates the profit center, segment.

8.The non-leading ledgers are used as parallel ledger together with the leading ledger. This can be used to apply different accounting standards, such as IAS/IFRS or US-GAAP

Regards,

Krishna Kishore

Hi

Reporting done by the Company for its Country Fiscal Year comes Leading ledger.

Reporting done to other Countries comes Non-Leading Ledger.

Suppose your Company is in India and US.

In India we submit the Financial Statements to the Govt by the Fiscal Year of April - March.

For America you are maintaining the Fiscal Year Jan - Dec.

Your main Reporting is for India, So Indian Fiscal Year comes the Leading Ledger and Americas comes the Non-Leading Ledger

For every company there will only 1 Leading Ledger and can have many Non-Leading Ledgers based on your companies Reporting.

Regards

Venkat

Dear,

The major usage of leading ledger and non-leading ledger are as follows....

Leading ledger

1.It is a base ledger, which updates the cost center and consolidation.

2.You can define only one ledger as the leading ledger u2013 SAP provides the leading ledger "0L".

3.The currency of the leading ledger is always used as the first currency.

4.The leading ledger is integrated with all subsidiary ledgers.

5.Only the values from the leading ledger are sent to CO.

6.The leading area in Asset Accounting (depreciation area 01) must be posted to the leading ledger.

7.Leading ledger uses the (additional) local currencies assigned to the company code.

8.Leading ledger uses the GL Total Table: FAGLFLEXT.

Non-leading ledgers

1.Non-leading ledgers are activated by company code.

2.You can define additional currencies that deviate from those used by the leading ledger.

3.As a second and third currency of a non-leading ledger, you may only use currency types that you have already assigned to the relevant company code for the leading ledger.

4.You can define a fiscal year variant that differs from the leading ledger. If you don't specify a FYV, the FYV of the company code is automatically used.

5.You can also define a posting period variant that differs from the leading ledger.

6.Separate document types and number ranges can be defined for non-leading ledgers by users, to ensure continuity in ledger numbering.

7.Non-leading ledger updates the profit center, segment.

8.The non-leading ledgers are used as parallel ledger together with the leading ledger. This can be used to apply different accounting standards, such as IAS/IFRS or US-GAAP