The Bike Company creates its consolidated balance sheet in accordance with International Financial Accounting Standards (IFRS). In addition, each legal entity creates their individual financial statements based on the respective local accounting principle.
As a result, a business transaction (for example provisions posting or foreign currency valuations) may be valuated differently by two legal entities, depending on the applicable accounting principles.
This prompts the question: how can different valuation approaches be mapped within one general ledger?
This lesson explains the basic concept of the ledger solution within SAP S/4HANA and belongs to the current process steps in the graphic below:
As part of the closing operations at fiscal year end, the Bike Company Germany calculates, and post pension provisions based on IFRS and local accounting principles. The provision amounts for each accounting principle are different.
The Bike Company decided to implement the ledger solution in SAP S/4HANA to map these parallel accounting requirements.