Consulting
Experience
Expertise in Finance, Accounting & IT
Available since ERP 6.0, SAP New G/L replaces the traditional general ledger with a modern, flexible financial architecture. It enables parallel accounting (e.g., German Commercial Code and IFRS), differentiated evaluations via document splits (e.g., by segment or profit center), and an integrated database across FI, CO, and special general ledgers.
By standardizing data structures, manual reconciliations are reduced and closing processes become faster and more reliable. Furthermore, the New G/L is fully integrated with SAP BW and SAP Analytics Cloud, creating a central foundation for internal and external reporting.
With the transition to SAP S/4HANA, SAP New G/L becomes mandatory. Companies should define the appropriate ledger structure early on, consolidate the chart of accounts, and harmonize reporting and currency structures.
The implementation of the SAP New General Ledger (New G/L) is a critical component of any SAP S/4HANA transformation – both functionally and strategically. While the New G/L has been available since SAP ECC 6.0, its use remained optional until now. Many companies continued to rely on the Classic G/L, often due to proven charts of accounts or parallel company code solutions. However, with the transition to SAP S/4HANA, the New G/L becomes mandatory and must be actively planned.
The concrete implementation and timing depend heavily on the chosen transformation approach – whether brownfield, bluefield, or greenfield. Especially with a brownfield approach, the migration to the New G/L before the technical S/4HANA upgrade required. The conversion therefore represents a separate subproject that precedes the actual release upgrade.
The introduction of the New G/L is not just a technical step, but touches on fundamental questions about the future structure of finance and controlling within the company. Topics such as ledger strategy, reporting dimensions, chart of accounts harmonization, and currency management must be rethought and coordinated within the overall architecture of S/4HANA.
A successful S/4HANA transformation therefore requires early, integrated planning of the New G/L implementation – functionally, organizationally and in terms of time.
