When you are in a conversion S/4HANA project you may come across with your customer to ask you to switch the leading ledger after the conversion due to the fact there is a new accounting principle for the consolidated financial statements.
The change is made by means of a ledger switch whereby the current leading ledger is switched with a non-leading ledger so that the latter becomes the future leading ledger. The non-leading ledger with the accounting principle to which your customer wants to switch becomes the leading ledger at the start of the new fiscal year. The current leading ledger with the accounting principle currently relevant for the group becomes a non-leading ledger. The ledger switch should take effect with the change in fiscal year. The fiscal year at the start of which the ledger switch is implemented is referred to as the "switch year".
After you have done all configurations in regards to the new ledger which will become the new leading ledger with new accounting principle for the consolidated financial statements there are some implementation considerations to follow.
In the T-code FINSC_LEDGER you have the option with check box to change the leading ledger, when you save it, you will receive the message ‘Do not make any changes (SAP entry)’ ‘Message no. SV117’. This message means that you have changed an entry which, according to the name is managed by SAP. SAP by default determines the ‘0L’ as leading Ledger, however due to the request you have from your customer you will need to change the leading ledger.
When you save it you may have the error message below:
If it is your case you will need to go to the T-code OBA5 the application area ‘FINS_ACDOC_CUST’ and message number ‘135’ to not equal to ‘E’ in order you are able to change your changes.
Go back to the T-code FINSC_LEDGER make your changes save it and revert back the error message control. Now when you run a T-code where you can change the ledger by default will come populated the new leading ledger.
Document carefully this change, so that you can repeat it, if necessary, after an upgrade or a release change. As SAP best practices the best way to do this is to put the date in change request, export it before an upgrade or release change, and import again afterwards if need it.
After the above changes are done and well documented, there are other configurations that you may need to validate it in order to determine whether you need to change the configuration or not to adjust it to the new leading ledger.
In group ledger, you will need to check whether you have a manual group ledger created or not. In case you have it and if your representative ledger is ‘0L’, this ledger will become obsolete therefore you need to discuss with your customer the need to change this ledger group by removing the ‘0L’ and adding the ‘2L’ as representative ledger to allow to continue to make FI postings against to the manual group ledger.
When you work with Extension Ledgers you will need to verify whether your old leading ledger are the underlying ledger or not. If is that the case you will need it to change for the new leading ledger in order this ledger to be updated with the documents of the 2L ledger.
In special purpose ledger, and if your customer has the special ledger implemented, you also need to check whether it has a reference ledger assigned to it. This is important because special purpose ledgers are updated on the basis of a reference ledger.
In Asset Accounting you also need to update your configuration after the changing of the leading ledger. In the definition of the depreciation areas post to general ledger you will have to replace the new leading ledger where your target ledger group is the old leading ledger.
In controlling, you also need to verify in the area of definition of default values for postings in controlling whether your company codes have or not default values for ledger group. In case that entry is populated within your old leading ledger you will have to make the change for the new leading ledger.
In the controlling there is an extra step you will need to validate which is the definition of ledger for CO version. In case your old leading ledger is defined for the CO versions used by your company codes you will need to change it for the new leading ledger.
To finalize your configuration, you need to understand with your customer whether the old leading ledger will be used or not. In case it will not be used you will need to deactivate it as Ledger for a Company Code. In this configuration activity, you can deactivate a ledger for future fiscal years on a company code basis.
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