Parallel Accounting (leading INGP, + IFRS)

In this scenario financial reporting following two accounting principles is described: IFRS and INGP (Local Indian GAAP).

The different accounting principles are shown using the new G/L with two ledgers (= the ledger solution). The SAP system always considers parallel ledgers as complete ledgers in this case. This means that all postings without a valuation (GAAP) difference are posted into the leading and into the non-leading ledgers in the respective company code. Valuation postings which are only valid for a specific GAAP will only be posted into the dedicated ledger set up for that GAAP. The usage of parallel accounts has been brought down to a minimum. The leading ledger (0L) is local GAAP and the additional ledger (YQ) is IFRS. This scenario describes many cases of valuation differences and proposes how to configure them in SAP.

This scenario consists of the following steps:

• Dialog information with two ledgers
• Closing process in FI with different valuations
• Asset accounting processes in consideration of different valuations

• Valuation of open items in foreign currency
• Valuation of balances in foreign currency
• Regrouping of receivables and payables
• Creation and reversal of accrual / deferral documents by ledger group
• Balance Sheet and P&L Statement
• Asset master data maintenance
• Analyze value changes of individual asset master record
• Asset Acquisition with accounts payable / with clearing accounts
• Activation of intangible assets according to IFRS
• Asset retirement with revenue and customer
• Fixed assets ?periodic processing and reporting