SAP Financial Accounting - General Ledger

The main objective of general ledger accounting is to provide an overall view of external accounting as required by various accounting principles (IAS, US-GAAP, local GAAP). Collecting and storing all business events from different business systems in an integrated software system ensures that account management is complete and synchronized at all times. For example, these business events can be primary postings from all subsidiary ledgers or from preceding components such as Asset Accounting (FI-AA), Accounts Receivable/Payable Accounting (FI-AR/AP), Controlling (CO), Materials Management (MM), Human Resources (HR), and Corporate Finance Management (CFM).
In addition to these legal requirements, general ledger accounting also fulfills other requirements for a modern accounting system:
Parallel financial reporting - Parallel financial reporting in general ledger accounting allows you to keep several general ledgers in parallel according to different accounting principles.
Integration of legal and management reporting - In general ledger accounting, you can handle internal management reporting and legal reporting in parallel. To enable this, functions of profit center accounting are integrated into general ledger accounting. Similarly, you can create balances and profit and loss statements across any dimensions (such as profit centers).
 
Segment reporting - You can create segment reports as required by the International Accounting Standards (IAS) and the Generally Accepted Accounting Principles (US-GAAP). General ledger accounting uses the Segment dimension to do this.
 
Cost-of-sales accounting - You can incorporate cost-of-sales accounting in general ledger accounting. General ledger accounting uses the Functional area dimension to do this.