 Parallel accounting: Handle different accounting principles (IFRS, local GAAP, tax GAAP) using the

same set of accounts, via the ‘ledgers’ functionality

 Segment reporting: Ability to generate complete financial statement per division (segment)
 Cost of sales P&L: Ability to structure P&L statement according to the cost of sales approach
(function-based) in Financial Accounting

As the client was previously using a classical GL approach (parallel accounting via dedicated accounts), a
NewGL migration was required in addition to the implementation of NewGL functions.

Description
People
Details
Tagging
Engagement content
Related quals

Business issues
As a result of multiple organizational changes over the years and the need to comply to new business and legal
requirements, the Client faced material challenges in the financial and reporting area and needed to
fundamentally re-design its data model, some of its financial processes and reports.

Engagement scope & approach

 The NewGL implementation and migration was a global project covering all legal entities in the SAP
system (over 80 company codes, all time zones involved)
 Migration scenario five was selected (activation of profit centers/segments and functional areas in FI,
activation of document splitting and zero-balancing, different ledgers). The migration has been
performed using the NewGL Migration Cockpit
 The Deloitte team followed the EVD for SAP methodology to deliver the project

Value delivered & impact

The business benefits of the NewGL implementation and migration are:

1. Standardization of posting differences between IFRS and local statutory/tax accounting by use of a
single set of GL accounts
2. Faster month end closing by eliminating FI-CO reconciliation
3. Lower use of offline excel to prepare statutory financial statements

In addition, the NewGL functionalities represent an enabler to start:

 Segment reporting: Ability to generate complete financial statement per division (segment)
 Cost of sales P&L: Ability to structure P&L statement according to the cost of sales approach
(function-based) in Financial Accounting
 Consolidation processes in SAP-BPC based on Financial accounting data (the client used Profit Center
Accounting in the past for consolidation)

Snapshot description
Provided SAP Technology services to migrate to NewGL, enabling parallel accounting, segment reporting and
cost of sales P&L.