How SAP New GL Streamlines Financial Processes and Reporting

eCommerce has been evolving quite rapidly since COVID-19 happened. Since then the customer viewpoint has shifted massively and it’s become a lot more important for businesses to be able to optimize their reporting processes.

However that’s not the only thing that has changed in the business industry.

For example, the core financial proceedings of an organization has altered to some extent too andt’s specifically happened because of the massive data flow most of the companies have to deal with now.

Thankfully, the advent of various new technologies has also paved the path for integration as well as automation in the industry. Because of this it has become much easier to get insights into your business and make more informed decisions.

SAP New GL (General Ledger), produced and launched by SAP, provides the user with an advanced financial accounting solution to solve all of their financial issues.

Understanding SAP New General Ledger – An Introductory Overview

Speaking from a technical point of view, SAP New GL can be considered as a comprehensive financial accounting solution, which can

1. Integrate with other SAP modules
2. Provide enhanced functionalities compared to the traditional General Ledger.

It serves as a centralized repository for financial data, enabling businesses to generate accurate and real-time financial reports while simplifying complex accounting processes.

Like any other SAP product this one comes with a wide array of features to help you with managing your financial segment. Here’s an overview of what you’ll get with it –

1. Parallel accounting

As you have probably already guessed, SAP New GL does support seamless parallel accounting. This enables an organization to manage more than one accounting principle at a time.

So, basically, you can use or employ IFRS (International Financial Reporting Standards) or local GAAP within a single system. There’s no drawback to it at all.

This feature can also help in streamlining the overtly-complicated reporting process by reducing or eliminating the requirement for separate systems and manual reconciliations.

2. Real-time integration

Thanks to the availability of SAP New GL you can also update the financial data you are getting in real-time. This can ensure that the decision-makers in your company have the most up-to-date data in their hands. Simply put it can help you make a profound judgment with ease.

Furthermore, as we’ve mentioned before, you may integrate SAP New GL with other SAP apps or modules too, including the following –

• Accounts Receivable
• Accounts Payable
• controlling

Because of this you can create a coherent data flow across more than one financial process. There’s no need to worry about unprecedented loss of information.

3. Enhanced Reporting Capabilities

With SAP New GL, you can also get access to a vast range of reporting options. It may include – segment reporting, standard financial statement, and profitability analysis. Using all of these in a single system can ensure that you are getting accurate and informational reports accordingly.

This solution can also offer customizable reporting templates and predefined reports for generating more insightful financial reports quickly. All of this perceived information can also be tailored specifically to the requirements of the company. Pretty great, isn’t it?

SAP New GL and Streamlining Financial Processes – How Does It Work

SAP New GL is quite unique, no matter how you look at it. For example, it can help you acquire a lot of information about your financial status and prompt you to improve it accordingly.

But, that’s just the tip of the iceberg. Let’s keep reading to learn more about how else the system can make your financial infrastructure produce better results.

1: SAP New GL and Streamlining Your Financial Closing Process

The financial closing process is a critical task that requires accuracy, efficiency, and timely execution. SAP New GL significantly streamlines this process by automating routine tasks and eliminating manual reconciliation efforts.

Here’s how SAP New GL simplifies the financial closing process –

a) Real-time updates

SAP New GL continuously updates financial data, ensuring that all transactions are immediately recorded. This real-time update eliminates the need for time-consuming batch processing and accelerates the financial closing process. Moreover, as you are getting real-time updates about an operation it will become easier for you to salvage it if it goes astray.

b) parallel accounting

With SAP New GL organizations can manage multiple parallel ledgers facilitating the parallel accounting process. This feature streamlines the reconciliation of accounts and reduces the time spent on reconciling differences between different accounting principles.

c) Document splitting

SAP New GL introduces document splitting, which automatically distributes financial transactions across different cost centers, profit centers, or segments.

This functionality eliminates the need for manual allocation and simplifies the preparation of financial statements, such as profit and loss statements and balance sheets.

d) Fast Close

SAP New GL enables a faster close by providing real-time insights into financial data. By automating repetitive tasks, organizations can focus on exceptions and anomalies, enhancing the accuracy of financial statements and reducing the overall closing time.

2: SAP New GL and How It Improves Your Financial Reporting Agenda 

When it comes to growing a business from scratch, timely and accurate financial reporting gets a lot more crucial than usual. After all, it can drastically improve your financial performance while helping you make informed business decisions.

So, this is where SAP New GL comes in.

The tool offers advanced reporting capabilities that can improve your financial transparency and enable you to acquire deeper insights. Let’s keep reading to know more about it.

a) Real-time reporting

SAP New GL provides real-time access to financial data, enabling organizations to generate reports instantly. Decision-makers can access up-to-date information on profit margins, cash flow, and other financial metrics, empowering them to make data-driven decisions.

b) Flexible reporting structures

SAP New GL allows organizations to define flexible reporting structures, such as profit centers, cost centers, and segments. This flexibility enables customized reporting based on specific business requirements, providing granular insights into various aspects of financial performance.

c) consolidated reporting

SAP New GL supports consolidation across multiple entities, enabling organizations to generate consolidated financial statements effortlessly.

This feature is especially valuable for businesses with global operations or multiple subsidiaries, streamlining the consolidation process and reducing manual effort.

d) Enhanced Analytics

SAP New GL integrates with SAP Business Intelligence tools, allowing organizations to perform advanced financial analysis.

With features like drill-down capabilities, trend analysis, and forecasting, businesses can gain deeper insights into financial performance and identify opportunities for improvement.

SAP New GL and How It Increases Control and Compliance

Compliance with internal controls and regulatory standards has always been a top priority for a corporation. And now, due to how eminent the security breaches have become, it’s become even more important for us to manage the aforesaid elements.

The solution – SAP New GL.

With this new technology, you can get robust functionalities to support compliance efforts and enhance financial control. Keep reading to know more about it –

a) Audit trail

SAP New GL maintains a detailed audit trail, documenting all financial transactions and changes made to financial data. This audit trail ensures transparency and accountability, facilitating internal and external audits.

b) segregation of duties

SAP New GL allows organizations to define and enforce segregation of duties, ensuring that critical financial processes are appropriately segregated. This control measure reduces the risk of fraudulent activities and supports compliance with regulations such as Sarbanes-Oxley (SOX).

c) Centralized Master Data

SAP New GL provides a centralized master data repository, enabling organizations to manage and control financial data centrally. This centralized approach enhances data integrity, reduces data redundancy, and ensures consistent reporting across the organization.

d) risk management

SAP New GL supports risk management by providing real-time visibility into financial data. With integrated risk analysis and monitoring capabilities, organizations can proactively identify and mitigate financial risks, enhancing overall financial control.

Are There Any Drawbacks of Using SAP New GL?

SAP New GL, in essence, is one of the best (if not the best) accounting solutions available in the market currently. But, there are still some other downsides of it that you need to be aware of.

For example –

1: It can be difficult to implement.

Implementing SAP New GL can be more complex and time-consuming than the traditional GL due to its enhanced features and functionalities. The migration process from SAP Classic GL to SAP New GL may require careful planning, testing, and data conversion.

So, if you want to complete this task seamlessly, it would be better for you to take someone’s aid who has done it before. Talking to SAP experts might also be helpful in this regard.

2: It Requires Proper Training and Expertise.

Since SAP New GL involves more advanced features and capabilities, it might require additional training for end-users and the finance team. Gaining expertise in the new functionalities can take time and effort – and, in some cases, a lot of different resources too.

Why?

New General Ledger may demand more robust hardware and technical infrastructure, especially when dealing with large volumes of data and complex reporting scenarios. Organizations might need to invest in upgrading their systems to support these requirements.

3: There are some challenges with customization and costs.

If your organization heavily relies on a customized SAP Classic GL functionality, migrating to New GL might require rethinking and adapting those customizations to the new environment.

Implementing SAP New GL and upgrading the infrastructure can lead to higher costs compared to maintaining the traditional GL. Organizations should carefully assess the return on investment (ROI) to ensure that the benefits outweigh the expenses.

FAQs – Frequently Asked Questions

In this section, we’ll try to offer some additional insights on how the aforementioned technology works or the core concept behind it. So, without any further ado, let’s get started with it.

1: What is the Concept of New GL in SAP?

SAP New GL is all about combining various individual ledgers, like profit center accounting and cost of sale ledgers. It comes with several new and improved features or functions of fast closing, parallel accounting, document splitting, and segment reporting too. So, basically, you can use the same to take care of almost any financial innuendos you are dealing with.

2: What is the Difference between Classic GL and new GL in SAP?

No matter how you look at it, SAP New GL provides a wide array of improvements in more than one aspect. For example, it can offer more flexibility and faster response time when compared to its older counterpart. Furthermore, the number of features the New GL comes with is higher than the Classic GL too. So, if you want to grow your business, it might be better to use the new one.

3: How Do You Understand If SAP New GL is Activated or Not?

The answer to it is a bit technical, so please follow the steps as they have been mentioned below –

• Firstly, open the dashboard of your SAP system and check the “FAGL_ACTIVEC” table. It will help you know if the new GL is activated yet or not.
• If you have posted a document before, then you can check if it’s available or not by using FB03. If you find an entry view there and you’re able to switch to the general ledger view – then yes, New GL has been activated successfully in your system.

If you are having any kind of problem with it, it might be better to talk to a SAP specialist. They have an extensive amount of knowledge in this regard and, thus, can help you with the issue.

The Bottom Line

As a financial accounting technology, SAP New GL has been impeccable till now.

Since the tech was launched, it has empowered thousands of organizations to streamline their financial reporting accordingly. So, basically, if you can successfully install and integrate it with your system, it’ll be easier for you to revolutionize how you operate.