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Subsequent Introduction of a Further Accounting Principle


Companies are increasingly required to produce financial statements based on different accounting principles including IFRS, US GAAP, or local legal requirements such as the German HGB. The ledger approach for parallel accounting is recommended. Nevertheless, the account approach is still available and can be used as well. This documentation describes the introduction a new leading ledger in combination with a new accounting principle.

The ledger approach in SAP Accounting operates on the assumption that common postings are made to all ledgers. For this purpose, postings from just one valuation view are only made to the specific ledger. For example, if the posting is only relevant for the leading valuation, this can be a posting to the leading ledger. However, if the posting is only relevant for the other (non-leading) valuation, this can be a posting to one of the other ledgers. When introducing a new accounting principle by implementing a new ledger, ledger groups, and depreciation areas, you need to ensure that the new ledger is updated with an opening balance, open items, and documents, which are already posted for the relevant fiscal year.

Technical Details

Technical Name of Product Feature


Product Feature is


Country Dependency

Valid for all countries

Application Component

General Ledger Accounting (FI-GL), Asset Accounting (FI-AA)


SAP S/4HANA 1610

Additional Details

First of all, it is necessary to define a project, including the new ledger, with all attributes and assignments to company codes. Furthermore, defining ledger groups, depreciation areas, and valuation methods is required to complete the relevant settings.

After completing the configuration, you need to ensure that the new ledger is filled with correct and consistent accounting data. Please run the reconciliation programs offered for accounting data consistency checks. If errors occur, it is recommended that you clarify and resolve them before transferring the accounting documents into the new ledger.

The following data are transferred from a defined source ledger into the new ledger:

  • Open items with key date at the end of the previous fiscal year

  • Balance carry forward for balance sheet accounts used to generate an opening balance

  • Historic values for event-based revenue recognition (optional)

  • Documents from the current fiscal year posted with the named source ledger. This also includes asset-related documents

  • Exception: ledger-specific open items from previous years do not get transferred!

Furthermore, the asset master data will be enhanced by the newly defined depreciation area for the new accounting principle and the initial depreciations will be calculated as part of the data transfer steps. You can then calculate the depreciation.

The data transfer steps are reconciled with check programs.

All data transfer activities are executed and analyzed in a project cockpit.

Once data transfer into the new ledger has been completed, you might want to adjust the copied values to be consistent with the new accounting principle. In order to adjust the values of the opening balances, a specific transaction is offered allowing you to post to period 0, where the values of the opening balances are stored. Further tasks might be required and related information can be found in the following chapters.

General Constraints

  • The new accounting principle can only be implemented for company codes if you are using the ledger approach. If you are using the accounts approach, then a new accounting principle cannot be implemented.

  • A change from the accounts approach (parallel accounting) to the ledger approach is not supported and it is, therefore, not possible to transfer designated posting data per account or account range.

  • It is not possible to implement an additional ledger in the same fiscal year as the fiscal year of migration to SAP S/4HANA Finance.
  • It is not possible to assign a new ledger to an existing ledger group.

  • The new ledger (target ledger) must have the same set of currencies and currency types as the source ledger. However, the currencies can be assigned in a different order. Please note that the implementation of a new accounting principle does not support the extension of a set of currencies.

  • When a new ledger is implemented, the target and source ledgers must have the same fiscal year variant. The update of asset values can only be carried out for identical fiscal years.

  • If you need to implement more than one accounting principle and therefore more than one ledger, then you will have to create a corresponding project for each new accounting principle. Then, these projects must be subsequently executed. Only one project can be executed at a time.

  • Only a representative ledger can be implemented in a project. Implementing a non-representative ledger is not possible. This means that the accounting principle must be assigned to a ledger group, which includes only one ledger.

  • An extension ledger cannot be a part of this project.

  • It is not possible to implement transfer prices in the target accounting principle if they do not exist in the source accounting principle. If you do not already use transfer prices, then it is not possible to introduce them in the project.

  • In SAP S/4HANA Finance, it is not possible to use the COGM (Multiple Valuation of Cost of Goods Manufactured) functionality and therefore, it is not possible to subsequently implement a new accounting principle if COGM is in use.

  • Archiving accounting documents from the current fiscal year cannot take place before the implementation of a further accounting principle.

  • If you implement a new accounting principle in the current fiscal year where you already recorded cross-company codes postings, then you need to ensure the following:

    • If a company code is assigned to the project ID, then the company code, which is affected by the cross-company code postings, must also be assigned to the project ID.

    • If your cross-company code postings in the current fiscal year include company codes, which use both the ledger approach and the account approach, then it is not possible to implement the new accounting principle for those company codes that use the ledger approach.

Effects on Existing Data

Existing data will not be affeted by the implementation of a further accounting principle.

Effects on Customizing

The activities in the SAP Implementation Guide, Start of the navigation pathFinancial Accounting (New) Next navigation step Financial Accounting Global Settings (New) Next navigation step Tools Next navigation step Subsequent Implementation of a Further Accounting PrincipleEnd of the navigation path support you with the necessary steps to ensure that the new ledger and depreciation area are maintained and filled correctly.

See also

Further information releated to Asset Accounting can be found here: