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Difference between Classic GL and New GL

Updated May 18, 2018

New GL Vs. Classic GL in SAP

In SAP ECC5 and ECC6 New GL and Classic GL are two ways to implement General Ledger functionality.

Over classic GL, New GL provides lot of benefits. Benefits of the New GL include:

  • In classic GL an extension to the existing functionality is provided or,
  • Compared to classic GL, new functionality is provided, or
  • To perform functionality in Classic GL, provide a technologically superior way.

To understand which solution addresses the business requirements better, it is imperative to understand the differences between Classic and New GL. A comparative study of the basic differences between Classic GL and New GL has been listed below:

(1) Flexibility is provided by extended data structure

In classic GL with New GL, SAP (Systems, Applications, Products in Data Processing) has consolidated the multiple totals table (GLT0, GLPCT, etc) into a single FAGLFLEXT Totals table. For reporting one Summary Table provides faster response time and flexibility. By adding customer defined fields FAGLFLEXT can also be enhanced.

(2) To ensure Statutory Requirements Segment Reporting

For segment reporting, the statutory requirements are defined by IAS accounting standards. The segment reporting is enabled by New GL as it has document splitting functionality. In Classic GL, the Standard Segment Reporting functionality is unavailable.

(3) Between FI and CO real time integration

Across functional area, business area and company code originating in CO Classic GL has the period-close reconciliation ledger functionality to synchronize FI and CO for cost transfers. Instead of a summary posting done by reconciliation ledger during period-close, new GL has a real-time integration between FI and CO that happens with each transaction originating in CO.

(4) Parallel Accounting

For parallel accounting like SAP IFRS (International Financial Reporting Standards) and GAAP, New GL provides Non-leading ledgers. Using Account based approach the parallel accounting can also be implemented which is also available in classic GL.

(5) By Faster Period Close Activities reduce TCO

With New GL, faster Period Close is possible as,

(a) Requirement of Reconciliation Ledger is not there
(b) Requirement of Balance sheet Adjustments are not there
(c) Requirement of Profit and Loss Adjustment are not there
(d) Requirement of Activities related to Special Purpose Ledger is not there
(e) Instead of a batch session depreciation posting is online

(6) In New GL Flexible Drill-down Reporting

By segment and other characteristics, New GL has advanced drill-down capabilities.

Read more about Difference between leading ledger and non leading ledger in ECC 6.0