Configuring the Preparation Ledger

At ABC Corporation, you’re planning to use the preparation ledger. It has several key features that you need for your implementation:

• You have real time access to group reporting data in accounting.
  Note

  As soon as a G/L entry is posted, group reporting data is available in accounting.
• You have the option to release only modified data and therefore a faster delta release process.
• You can derive consolidation units.
• You can release data to special periods. This is better than including special period data in the last normal period of the fiscal year.

To use the preparation ledger, go to the Check Global System Settings activity in configuration.

If needed, input a value for the From Year for Group Reporting Preparation Ledger.

To configure the preparation ledger, go to Define Group Reporting Preparation Ledgers. Add a new entry as follows:

• Config ID: This is a logical id of your choice.
• Group Reporting Preparation Ledger: Select an accounting ledger that you want to define as a group reporting preparation ledger. This activates the derivation of group reporting fields in the group reporting preparation ledger.
• Consolidation COA:  The COA you select is automatically used in accounting postings and determines the FS item values that can be derived during accounting postings.
• FS Item Mapping Version:  Optional. You can assign an FS item mapping version to the group reporting preparation ledger. This is only necessary if you want to use the standard G/L account to FS item mapping. FS items can also be derived during accounting postings based on substitution rules.
• FS Item Attributes Version: Optional. You can assign an FS Item attributes version to the preparation ledger. This is used to make time and version-dependent FS item master data attributes available for substitution and validation rules in accounting.

Each group reporting preparation ledger can only have one corresponding consolidation COA. However, a single consolidation COA can be assigned to more than one group reporting preparation ledger.

When using the preparation ledger, all accounting companies must use the same fiscal year variant.

Extension ledgers can also be defined as group reporting preparation ledgers. An extension ledger must have the same consolidation COA assigned as its underlying ledger. Also, an extension ledger's entry as a group reporting preparation ledger must be deleted if its corresponding underlying ledger's entry is deleted.

Opening Reclassification Subitems is applicable when you realign data with the Realign Group Reporting Preparation Ledger job.

If there's a change in your substitutions, or G/L account to FS item assignments, you need to realign your data in group reporting. However, to make corrections to the opening balance of a new fiscal year, you can't do so directly on the subitem used for the opening balance. This is because the opening balance of the new fiscal year must exactly match the ending balance of the previous fiscal year. You can assign separate subitems to be used for the corrections.

To make your corrections, select the Carryforward Subitem used for the opening balance that you want to make corrections to. Then, you can select a corresponding Carryforward Reclassification Subitem that you want to use for corrections that will adjust the opening balance.

As a result, the corrections appear as separate entries and the opening balance on the opening subitem still matches the ending balance.