Finance & Controlling
What is Parallel Accounting?
Maintaining books according to several accounting principles, such as IFRS and local GAAP, in the same system.
SAP supports this with parallel ledgers, ledger-specific postings, and depreciation areas in asset accounting. Valuation differences show up mainly in assets, provisions, and foreign currency valuation. Close testing must validate each ledger.
Related terms
Leading Ledger
The main SAP ledger, usually 0L, that reflects the group accounting principle and integrates with controlling.
Extension Ledger
An S/4HANA ledger that stores only delta postings on top of an underlying standard ledger.
Asset Accounting
The FI sub-ledger for managing fixed assets through acquisition, depreciation, transfer, and retirement.
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