L1- Parallel Accounting

Question 1

Why do companies have to deal with parallel accounting/parallel valuation?

Answer 1

To compare companies or (annual) financial statements of international accepted accounting standards, because It is not enough any more to publish financial statements of local accounting.

Question 2

How can a SAP S/4HANA customer fulfil this requirements of parallel accounting/parallel valuation?

Answer 2

Accounts Solutions and Ledger Solutions

Question 3

What is Account Solutions for differences between the valuation, depreciation and accrurals?

Answer 3

Different valuation approaches post to different accounts

Question 4

Purpose of Account Solutions

Answer 4

the financial statement version is used to evaluate the relevant accounts.

Eg. Financial statements according to U.S. GAAP only take into account that follow this accounting principle.

Question 5

What is ledger solution?

Answer 5

manage multiple “general ledgers” in parallel and create different financial statements.

Ledger solution is strongly recommended for new SAP S/4HANA systems (Greenfield Approach) these days.

Question 6

Purpose of other ledgers in General Ledger Accounts

Answer 6

Different ledgers for different accounting reporting standards.

Although G/L accounting has one leading ledger in one client.

Question 7

How to deal with different reporting standards in older systems

Answer 7

By using the additional (parallel) accounts