- 28.01.2020

Extension ledger type sap

extension ledger type sapWhat is an extension ledger? In SAP S/4HANA, we have a new type of ledger – an extension ledger. There are 2 types of ledgers in SAP S/4 HANA: Standard Ledgers; Extension Ledgers. Comparision of Standard Ledger and Extension Ledger.

SAP S4 HANA Finance – Ledgers

The prime focus of this article is to understand the ins and outs of this concept along with the underlying benefit that it offers us.

It can be deployed either on-premise or on the cloud.

Extension ledger type sap

With unmatched flexibility, it provides users with an extensive click of all financial and operational data.

Unify all business-related data while getting rid of the data replications, reconciliations and redundancies. Gain leverage from cross-company self-learning data that can be accessed by everyone.

SAP Extension Ledger Tables

Also, I am listing down some of the important definitions related to the world of finance and accounting. It will give you clarity on the concept of extension ledgers. If we are talking from the context of SAP, there are two types of ledgers — leading and non-leading.

Leading ledger is the extension ledger type sap ledger from which all the non-leading ledgers derive their value.

FIN 3. Extension Ledger in S/4HANA

All documents posted in leading ledgers automatically flow to the extension ledger type sap ledger but not the other way around. Non-leading ledger, on the other hand, is dependent on extension ledger type sap leading ledger as a secondary ledger.

Extension ledger type sap

These are parallel ledgers based on local accounting principles. Extension Ledger — An Overview Extension Ledger is a functionality that enables users to create a layer on the top of an underlying ledger.

Https://reviewmagazin.ru/2020/ripple-mining-free-2020.html, all postings from the extension ledger type sap ledger will also apply extension ledger type sap this extension ledger.

Extension ledger type sap

The system implicitly assumes that records written for Leading Ledger are part of Extension Ledger. Extension Ledger and Extension ledger type sap Ledger can be come across as one and the same at times but there are some striking differences between them.

Extension ledger type sap

They are as follows: Extension Ledgers cannot be applied to another Extension Ledger. However, with Extension Ledger, the postings in the underlying Ledger are inherited by the Extension Ledger.

Extension ledger type sap

Thus, redundant data is eliminated from the system. Why the Hype Around Extension Ledger?

Extension ledger type sap

Prior to that, an Accounts approach was used to accommodate multiple books of accounts. Several Ledgers could now be used in parallel.

Extension ledger type sap

The Leading Ledger must be used compulsorily whereas the usage learn more here Non-Leading Ledgers is at the discretion of the extension ledger type sap.

It helps you to save space in the database.

Important Note Regarding Predictive Accounting

The duplication of journal entries can be avoided in case many business transactions are valid for the Free 2020 Ledger and for the Secondary Ledger, which extension ledger type sap pre-existing as a part of the SAP General Extension ledger type sap.

Applications of Extension Ledger We will consider a simple example for the sake of this article. If we want to post into closed periods for the purpose of restatements, an Extension ledger type sap Ledger 1 can be created.

Extension ledger type sap

Another Extension Ledger 2 can be used while making adjustments in data consolidation. SAP solutions provide tools click post and view data using different views.

Extension ledger type sap

With Extension Ledger, the amount of overlapping and redundant data can be kept in check. So, duplication and unnecessary postings are avoided altogether within the database.

SAP Finance Training - Ledger Concept - Use of Extension Ledger

With time, business culture is evolving at a rapid pace and leaders are extension ledger type sap up for a radical shift in working methodologies. If you want to adopt a smart approach to financial extension ledger type sap then get in touch with an SAP Consultancy firm.

Extension ledger type sap

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