Defining and Assigning Accounting Principles 

Use

For data to be posted automatically to your parallel ledgers, you have to make various settings for the accounting principle and the valuation areas in the different application components.

Prerequisites

You have defined your ledgers and ledger groups.

For more information, see Making Settings for Ledgers.

Procedure

Make settings in the following application components:

Financial Accounting (FI)

In the Implementation Guide for Financial Accounting (New), choose Financial Accounting Global Settings (New) → Ledgers → Parallel Accounting →

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       1.      Define Accounting Principles

Specify your parallel accounting principles.

       2.      Assign Accounting Principle to Ledger Groups

Assign the accounting principle whose values are to be posted to the parallel ledger to the corresponding ledger group.

       3.      Assign an accounting principle to the valuation area of General Ledger Accounting. (You have already assigned this accounting principle to a ledger group under point 1.)

In the Implementation Guide for Financial Accounting (New), choose General Ledger Accounting (New) → Periodic Processing → Valuate → Assign Valuation Areas and Accounting Principles.

To portray parallel accounting via additional accounts or parallel ledgers, you may have to make additional settings for the individual functions. For more information, see Parallel Accounting in Financial Accounting.

Asset Accounting (FI-AA)

·        Assign a ledger group to each posting valuation area. Assign the ledger group that contains the leading ledger to the leading valuation area 01. You do not have to assign accounting principles.

For more information about the settings in Asset Accounting, see Parallel Accounting in Asset Accounting.

Corporate Finance Management (CFM)

·        In the Implementation Guide for Corporate Finance Management, choose Transaction Manager → General Settings → Accounting → Organization → Assign Accounting Codes and Valuation Areas.

On the detail screen, you assign the relevant accounting principles to the valuation areas of CFM.

To portray parallel accounting via parallel ledgers, you may have to make additional settings for the individual functions. For more information about the settings for parallel accounting in CFM, see Settings for Parallel Accounting.

Controlling

·        Specify the accounting principles for goods in process and results analysis.

                            a.      Goods in process:

In the Implementation Guide for Controlling, choose Product Cost Controlling → Cost Object Controlling → Product Cost by Order → Period-End Closing → Work in Process → Define Posting Rules for Settling Work in Process.

                            b.      Results analysis:

In the Implementation Guide for Controlling, choose Product Cost Controlling → Cost Object Controlling → Product Cost by Sales Order → Period-End Closing → Results Analysis → Define Posting Rules for Settlement to Financial Accounting.

For more information, see Parallel Accounting in Controlling.

Materials Management

·        When you perform the alternative valuation run, specify an accounting principle on the Settings tab page.

For more information, see Parallel Accounting in Materials Management.