New GL and New Asset Accounting for S/4HANA Finance

From a perspective the we are using classical GL and classical asset accounting in ECC and we want to Migrate from existing ECC system to S/4 HANA Finance.

Generally a question arise if we are migrating to New GL with S/4HANA Finance then why should I run a separate project?

Here is the answer to this question.

In S/4 HANA Finance New Asset Accounting is must to use and for new asset accounting it is must to use New G/L. So how we can handle New GL in S/4 HANA Finance without proper migration from classical GL to New GL while migrating from ECC using classical GL to S/4 HANA Finance.

Two options has been given by SAP for this scenario:

1. Migrate from classical GL to New GL.
2. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance.

What is difference between these two options?

1. Migration from classical GL to New GL: This migration should be done as separate project and should be executed before migration to S/4 HANA Finance. With this migration new functionality get introduced like:

• Document Splitting

• Balance Sheets at the Profit Center Level

• Parallel Accounting

• Segment Reporting

• Ledger Approach for Parallel Accounting

• Custom field

2. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance.
For sake of migration to S/4 HANA Finance we activate New GL and this provide us minimal functionality of New GL. Migration to new General Ledger Accounting as part of the migration to the S/4 HANA Finance does not support major functionalities likes

• Document Splitting

• Balance Sheets at the Profit Center Level

• Migration from Special Purpose Ledger to New General Ledger Accounting

• Parallel Accounting

• Segment Reporting

• Ledger Approach for Parallel Accounting

• custom field

We should migrate to New GL as separate project if we want character wise balance sheet. This migration can be done before migrating to S/4 HANA Finance or after migrating to S/4 HANA Finance but required separate project.