Parallel Accounting in SAP: Multiple Accounting Standards - Leading & Non leading Ledger

[@harsha7677]

Thank you for details. You have explained this topic profoundly. The concepts get cleared

[@manjunathy4469]

Thanks for your valuable time sharing the knowledge with us

[@AbdullahGalal]

It's my pleasure

[@prashanthinge6714]

You explanation is simple though effective.. Keep it up my friend..

[@AbdullahGalal]

Thanks, will do!

[@praptinegi9365]

This was very helpful. Thank you.

[@AbdullahGalal]

You're welcome!

[@RebeccaHough-l9h]

Very clear and made easy to understand. Thank you

[@AbdullahGalal]

You're very welcome! I'm glad to hear that you found the explanation clear and helpful. Thank you for your feedback!

[@imadmohallem2231]

Thanks for your very clear explanation. Your examples within the system are very appreciated

[@AbdullahGalal]

Glad it was helpful!

[@kapilvdeshpande]

Thank you for explaining the base of these approaches. Clear on parallel accounting now. Thanks a lot for sharing.

[@AbdullahGalal]

Welcome Kapil

[@waleedka3wash753]

جد بشكرك انك وضحت من اكثر الاشياء تعقيد بموديل المحاسبة

[@AbdullahGalal]

Thank you :)

[@AjitKumar-zo3fq]

simple explanations.. good to start with the concepts...

[@AbdullahGalal]

Great

[@lokeshmedehall8881]

Valuable information provided. Thank you very much..

[@AbdullahGalal]

Glad it was helpful!

[@kondepudikeerthana1197]

Very very informative

[@kajendranj1549]

Explained in details, very informative . Thanks

[@AbdullahGalal]

You're welcome

[@SP-vg8ih]

It is simplefied like a butter. Many Thanks

[@AbdullahGalal]

Very welcome!

[@mollenruziwa8485]

Am new to accounting am trying to change my carrier and since yesterday l was stuck on account appoch and ledger approach but am glad now l can move on😃 thanks

[@AbdullahGalal]

Very glad to help, good luck 😉

[@Sravanthi1111]

Thank you, this is basic information and every financial accounting manager / analyst should know, you made it simple

[@AbdullahGalal]

You're very welcome!

[@Santoshkumar-cw3lf]

Your explanation is too good. Love you brother 😊👍

[@AbdullahGalal]

Thanks a lot Santosh!

[@balap8655]

Thank you for your time and sharing your knowledge. Excellent presentation to understand the account & ledger approach. It would be very nice if you can explain the process in closing these 0L and NL ledgers separately in different FYV scenario.

[@marianabeggi8077]

Thank you so much for the explanation, very helpful

[@harleensahiba]

Very clearly explained. Thank you so much :)

[@AbdullahGalal]

You're welcome!

[@RohitKumar-kl9ox]

Wow, u did a splendid job of clearing the concept with examples... Much needed this... could not find such connection between FSV, transactions , and adjustment .. many thanks!

[@AbdullahGalal]

My pleasure!

[@arindamgupta6056]

Thank you sir, You are a Genious and the video is very much useful to understand the basis requiremet of different Ledgers

[@AbdullahGalal]

You are most welcome

[@gaming-sistersquad305]

Excellent explanation,thanks a lot sir

[@AbdullahGalal]

You are most welcome

[@senthilkumar-xw1dz]

Awesome NIce explanation

[@AbdullahGalal]

Thank you

[@thomaspham4094]

Thank you! Very well explain.

[@AbdullahGalal]

Glad it was helpful!

[@Rameshkumar-ev9sl]

Good Explanation

[@AbdullahGalal]

Thank you Ramesh

[@Abu-Aley]

Very informative indeed. Cheers, Ahmad,

[@AbdullahGalal]

Thank you Ahmad

[@manjuprasad7975]

Thanks a lot Mr Abdullah. Parallel account was very confusing for me before I had not seen your video. I appreciate the way you explained both the reporting approaches. Now the topic is very clear to me. Keep going with your good work....👍👍

[@AbdullahGalal]

You are most welcome

[@genxiao8737]

Thank you so much! This really helps!

[@AbdullahGalal]

Glad it helped!

[@pallavimamidi4112]

Thanks alot very helpful video 😊

[@AbdullahGalal]

Glad it was helpful!

[@murali3767]

excellent explanation

[@AbdullahGalal]

Thank you

[@antoniocarvalhodelima8942]

Good explanation. It is good to say that we never sum ledgers, because are different kind of accounting.

[@AbdullahGalal]

Thank you

[@bhushanpawar63]

Good explanation on ledger and account approch.

[@AbdullahGalal]

Glad it was helpful!

[@devendrasinghvaswani8769]

Hi AG, Nice Information as you shared. Thanks

[@AbdullahGalal]

My pleasure

[@dakshyesweker4810]

I always struggled to understand different between account approach and ledger approach. Thanks for the explanation.

[@AbdullahGalal]

My pleasure, thank you for watching

[@NKMRHRS0817]

Thank you very much for your explaination. It helped a lot to learn what parallel accounting is. I hope you could also create a video explaining parallel accounting from the asset accounting perspective.

[@AbdullahGalal]

Welcome, will do my best

[@pranayanayak4940]

Great thanks sir for explanation

[@AbdullahGalal]

Most welcome

[@ahmedsalaheldin6275]

انت الاول :) لك التحية

[@AbdullahGalal]

شكرا أحمد

[@saibalu4320]

Accounting approach part is really Informative, Abdullah!!

[@AbdullahGalal]

Glad you liked it

[@satishmusunuri5563]

Good explanation

[@AbdullahGalal]

Thank you Satish

[@yingzhu3104]

Thanks, good session.

[@AbdullahGalal]

Glad you enjoyed it

[@Aerwiar]

Thanks for the very clear explanation!

[@AbdullahGalal]

You are welcome!

[@wiliansilva9365]

Congratulations and thank you, explanation, complete and detailed. Explanations are often partial and do not cover the entire process.

[@AbdullahGalal]

Glad it was helpful!

[@danielakpan9912]

Dear Abdullah, many thanks for this video! I wasn't able to comprehend Parallel Accounting within the SAP context until I watched this video. Your approach is apt and easy to understand. Could you please do another video on Parallel Accounting for Assets? Thank you

[@AbdullahGalal]

You're welcome! There's a full playlist for fixed assets and I've already covered parallel ledgers for FA there

[@ahmedrabia5827]

very informative, thank you Abdullah.

[@AbdullahGalal]

You are welcome Ahmed

[@nagahanumantharao1444]

Really helpful. Much appreciated

[@AbdullahGalal]

Thank you Naga

[@mom12996]

اللله ينور عليييييك يا غالي

[@AbdullahGalal]

🙏🙏

[@oussamamaaroufi8308]

Excellent, keep going!

[@AbdullahGalal]

Thanks, will do!

[@infiniteproducer5706]

Great sir

[@vikramkatyal934]

Appreciate and thank you for sharing knowledge and such informative content. However i found it easy to work with Ledger approach in Hana, since the users have more visibility in different Fiori line item and balance reports per ledger. Easy to filter separate and post additional entries to other ledgers if required. It is easy to work with Assets as well in ledger approach after config is done. But I totally agree that it depends as per business scenario.

[@AbdullahGalal]

Thanks for sharing this view!

[@mahmoudshehab5701]

You use the ledger approach for parallel accounting in Asset Accounting. Depreciation area 01 is assigned to the leading ledger for an area 01 is assigned to the leading ledger for leading valuation and depreciation area 32 is assigned to the non-leading ledger for parallel valuation. What posting option should you choose for depreciation area 32? parallel accounting in Asset Accounting ممكن شرح السؤال دا ي استاذ عبدالله ولو ممكن فكره في الفديوهات اللي جايه ان شاء الله عن

[@AbdullahGalal]

Great question, you should read more into the process. Check this awesome blog, it will answer your question and much more: blogs.sap.com/2020/04/08/parallel-ledgers-valuation-in-s-4-hana-new-assets-acounting/

[@erendiracano1057]

You are the best, I passed my certification TSFIN52 and these topic was very difficult , now I go for TS4FI_1809 certification and I just discover you channel, you are great and you English is perfect. THANK YOU

[@AbdullahGalal]

Thanks a lot Erendira, and congrats on your certificate!

[@bprabhaacarareddy211]

thank you so nice of you

[@AbdullahGalal]

You are very welcome! Thank you for feedback

[@ntandodlamini8239]

Thank you sir, much appreciated.

[@AbdullahGalal]

You're welcome sir

[@suleaysegulgunasti8632]

Your videos are very helpful and informative! Thanks for all your work! I am expecting another video for Automatic Payment Process and specifically Payment Methods and configuration :)

[@AbdullahGalal]

Hi Sule, There's already a video for automatic payment process, you can find it in the channel

[@pareshchari9636]

Hi AG , the above videos is informative 👍👍👍. Can you further explain the following. 1)How accounting enteries will posted in leading and non leading ledger. please take one complete scenrio of Accounting principle and its accounting enteires. 2)If a company code use IFRS/local accounting and USGAAP having two different fiscal years , how will the closing will be done.(Assets, AR ,AP.ACCURALS, DEFFERALS, etc) 3) In case non leading ledgers in ledger approach how will a FSV look like.Do it will have common GL or will it be considered from 0L as the base. 4) In S4 hana since we will have secondary cost elements , how will this secondary cost accounting ( Apporations, Allocations) will show in non leading ledgers, if any. If you have sufficient time kindly explain through videos Thanks in advance, love your videos 👍👍👍

[@AbdullahGalal]

Great notes, thank you!

[@lukagrijak1451]

Awesome video as always. Can we expect a video on new Universal Parallel Accounting functionallity? :D

[@AbdullahGalal]

I wish I can get access to this !!! It's still in pilot with limited customers

[@khames7891011]

Thanks very much Abdullah for your appreciated effort , Could you arrange second session for deep knowledge about configuration and function for parallel approach for two ways ?

[@AbdullahGalal]

You're welcome Mohamed, will do my best

[@ivetaschuster134]

This video was posted 4 years ago. I would like to know if you still think that the account solution is better than the ledger solution? Thank you for your amazing explanation skills.

[@AbdullahGalal]

Very nice comment 😀...I still believe the account approach is easier to apply but the ledger approach has much more capabilities

[@vikrampatil340]

Nice explains, if you have detailed video please share

[@blackwolf1528]

It's more ledger approche which is used when it comes to manage automatic flows ans high volume of data. For information, when it comes to feed cash accounts, it's multi ledger flows that is used. Meaning that the expense is payed in IFRS ans local gaap but after the IFRS d'ajustement is coming in order to move it from expense to asset.

[@MohtashimAli-gs4rp]

hi in SAP S4 hana i am encountering an issue related to the Raw material as per IFRS we value the stock lower of cost and NRV ( using FIFO and weighted average ) but our system is using standard accounting and creating variances in the pnl which is not in compliance with the IFRS can you make a video on it simplifying this and how can i fetch the report in accordance with FIFO and moving average. Thanks for you amazing videos

[@MrHuangjia]

Thank you!!!!!

[@AbdullahGalal]

Welcome!

[@lifewithsmita66]

Parallel accounting - accounting principle is accounting standards. E.g ifrs ias us gaap. When company is working internationally then need to prepare financial statements in diffn accounting standards. Difn betn gaap and ifrs . Research and development are exp in gaap and assets in ifrs. In account approach we need to create new gl acts to post adjustments entries. Gaap finsntial entry

[@AbdullahGalal]

Great summary

[@diwa607]

Liked your content. very precise. Please see if you can do Asset Accounting S4HANA.

[@AbdullahGalal]

I'm planning to start soon

[@laksht9503]

Good explanation. If u can correlate the ledger concepts with Asset accounting it will help.

[@AbdullahGalal]

Sure, but that's a more advanced topic, will have to explain some Assets basics first

[@basantwael8927]

hi abdullah i am confused regarding the difference between the 0l the leading ledger and 2l the non leading ledger i read in e-books that the leading ledger is a predefined in sap if the ledger is predefined do i assign it to gaap standard for example and create another ledger for ifrs or even using 2L and called it the non leading ledger thanks in advance

[@SaviYanaginouchi]

Thank you

[@faizanyaqoob2978]

Hi Abdullah, First of all great presentation really helped me understand the concept however I have a question regarding the account approach. When we post the adjustment it will update the effect in retained earning account automatically so when we create two separate financial statements the impact of original expense from your example will be nullified right? I think I am missing something here can you please explain how will the retained earning account be handled in FSV.

[@subhalatha4411]

Thank you Sir. Could you please explain CO- PA (Profitability Analysis) process.

[@AbdullahGalal]

COPA is an important part, but I have to finish the product costing first

[@rajug2316]

Very good explaination abdulla thanks for the video, can you please make a video on NEW GL ACCOUNTING

[@AbdullahGalal]

My pleasure Raju , new GL is no longer new 😀, it was new when ECC6 was first released around 2013, now it's the normal thing

[@rabahattallah8940]

شكرا استاذ عبدالله، لو سمحت، لاحظت سؤال طرحه الأخ محمود شهاب، هل يمكنك الإجابة عليه وشكرا

[@AbdullahGalal]

you're welcome, question answered

[@sinzsinz3289]

Hello, I have a query - for accounts approach at this point 6:49 >> In our example in GAAP we can say that the cash/asset is spent but if we look at the IFRS entries there is no effect.. i mean in actual the asset balance should be increased but it is neither increased nor decreased. So if IFRS guidelines say that its an asset and not an expense we are unable to show the increased in our asset balance. Can you please help me to understand how are we managing the IFRS entries when we are unable to show that our asset actually increased?

[@bebossinafrica9579]

Hello Abdullah. Thanks for the explanations. In the léger approach why is IFRS in the example set as 2L instead of 0L. I think if we are in group reporting all companies will post in 0L and the local companies in 2L . Sorry for the confusion on my side.

[@gandhiparasa3155]

Group chart of account is use for only account approach or ledger approach or we can use both scenarios ?

[@AbdullahGalal]

They are not related ..it can be used in both cases

[@kamleshjadav3285]

You may continue the series on Product costing.

[@AbdullahGalal]

It's planned once I have a good continuous system access

[@telugumm5792]

plz post a vidoe on asset accounting theory

[@tariksme]

I have a question please: Can we define rules so that SD module posts different information in ledgers? Example if I use my ledgers for stat and management accounts, I'd like to post salaries in SALARY GL in Stat accounts and in COST OF SALES GL in Management accounts. Thanks (how can I contact you ? )

[@AbdullahGalal]

You can contact me on Linkedin or on my website www.galalconsulting.com What's the business scenario?

[@samijamaa560]

Thank you Abdullah!. In case of ECC, what is the best approach to implement for IFRS: Account or Legder approach? knowing that we will migrate to S4Hana in 18 months' time. I read that account might be easier but when migrating to S4H, a ledger approach is much easier to migrate to S4H.

[@AbdullahGalal]

I always prefer the account approach, it's less complicated and doesn't require additional configuration, same in ECC and S4HANA

[@chiit70]

good

[@AbdullahGalal]

Thanks

[@bolognesi4094]

Do we intall/spro steps something about/regarding to accounting principles or are just procedures to follow when posting?

[@AbdullahGalal]

If you use the ledger approach then yes it includes heavy customizing, while the accounting approach almost requires zero

[@ceciliachua949]

Hi Abdullah, thanks for the knowledge sharing. Appreciated! May I seek your advice on assigning 2 COAs to a single company code in S4hana? Thanks for your advice in advance.

[@AbdullahGalal]

You mean like country chart of accounts and group chart of accounts ? Yeah this can be easily done. I believe I explained this somewhere in the channel. Anyway you can check this link help.sap.com/docs/SAP_S4HANA_ON-PREMISE/5e23dc8fe9be4fd496f8ab556667ea05/9f53c2531bb9b44ce10000000a174cb4.html

[@emisiaaa]

Hey, although ledger approach requires more configuration, in fact it's much easier to use and understand by accountants. Think about how to make life of accountants easier, not how to do less customizing... You definitely will have fewer GL accounts to manage in your chart of accounts (and companies hate blowing out the CoA). I think S4 Hana will recommend ledger approach in the future and try to avoid the accounts approach. The leading ledger should never be assigned to a local accounting principle, it always follows the group principle, because of the integration with controlling and consolidation systems. It's a very important setting and it should be carefully executed.

[@AbdullahGalal]

Great insights, thank you for sharing

[@dduggal81]

Great Video! Where can I find more details?

[@AbdullahGalal]

Glad you like it, you can check the blogs.sap.com website

[@ravijosan5223]

In ledger approach...we will have same G/L while posting then why you were saying, in Gaap if account is expense then in IFRS it will be asset ( balance sheet)...please help me to understand.

[@AbdullahGalal]

One of the differences between IFRS and GAAP is that in some cases when we spend we post it as Asset in IFRS and Expense in GAAP in this case the main standard will be posted to both IFRS and GAAP but then we post an adjustment entry to only one of them to adjust the accounting treatment

[@nishantsirari]

Thank you for the video. Can you please tell me how a ledger and Chart of account is mapped. We require to create FSV one for group and the other for country specific COA. I do know that we have alternative account in GL master and also in F.01. Is it possible to have 1 FSV for both.

[@AbdullahGalal]

>FSV is a drawing of your financial statements, it can read the numbers from any ledger >You mean you're using alternative account numbers for country COA, you can display the financial statments with original COA or Country COA in F.01

[@mehmeteminbitiren210]

Thanks for your effort.Will you publish a udemy course? When?

[@AbdullahGalal]

It's in the plan, but I don't allocate enough time to it :)

[@shaiksadiq6444]

Sir I want to learn in detail concept of parellel ledger so how can I learn can you please suggest any scope or any channel….

[@sumanreddy6969]

Hi Abdullah, Good explanation I have a question that in Account approach how the integration between IFRS FSV and LGAAP FSV. However we have different gl accounts as per reporting standards.

[@AbdullahGalal]

Create 2 FSV, one for IFRS and one for GAAP and in every FSV you assign different accounts

[@shahinhasan1361]

Dear I am working in SAP infrastructure organization and I am very interested to take deep knowledge in SAP but I don't know how to start sap as a student

[@AbdullahGalal]

Decide what module you want to study first

[@shahinhasan1361]

@@AbdullahGalal if i am a finance guy and working with finance department, so i first would like to study FICO model. Almost i have seen every video which you have uploaded and i have learned a lot of. So from what i can learn , Please suggest me. I will be honour to you.

[@horimberebertrand3220]

Thank you again Sir. Could you please explain the difference between the Special Purpose Ledger (used in Classic G/L) and the Parallel Non-leading Ledger (used in New G/L) in terms of functionalities, use and configuration?

[@AbdullahGalal]

Hi, I never used special purpose ledger, did you check SAP Blogs?

[@horimberebertrand3220]

@@AbdullahGalal Yes, I did . But I didn't find any clear answer to my question. It is important for me to know those differences as an SAP Consultant because some companies still use the Special Purpose Ledger. Thank you anyway

[@othmaneallaoui1260]

Special Purpose Ledger is more flexible than New G/L because is a separate component ( reporting tool) that can be used for multiples modules and you can add your own dimensions easily without impacting existing model.

[@harisankarrana2934]

Hello sir How learn SAP

[@govardhanreddy7363]

Hi Abdulla, pls try to create course in udemy. so that it can be helpful to all aspirants to understand clearly.

[@AbdullahGalal]

Yes! I just need more time

[@carolinafigueroa852]

Hi, I have some questions, how Can I contact you ?

[@AbdullahGalal]

Hi Carolina, On LinkedIn www.linkedin.com/in/galal

[@banupriyasaravanan511]

Good information, i have one doubt whether Leading Ledger OL have to assign in IFRS or Local GAAP

[@AbdullahGalal]

It depends on your requirement, 0L is usally assigned to the local standards for the country

[@ganpabs5]

Hi, Could you explain me how to read Cost center report S_ALR_87013611, means how to analysis Variances and report to management .

[@AbdullahGalal]

I've a playlist for product costing and I should get there once I continue

[@ernestoramirez4377]

Somebody uses this aplication in Latinamerica?

[@uj313]

One suggestion for you Abdullah, please do not use your hand gestures that much intensively. And also please its so weird you often call... I am going to, going to be.. Thanks never mind please...!!!

[@Abu-Aley]

I reckon it's a personal matter and for the audience the right either to watch or to turn it off. No offence it's just an opinion, so please never mind. Cheers, Ahmad,

[@AbdullahGalal]

Thenk you for the notes, I did use my hands a lot when explaining the financial statements part so that's a good point

[@laksht9503]

I don't think that is a big issue. Natural Presentation skill is always better and keeps the audience involved