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Comparative Analysis between New GL and Classic GL

New GL and Classic GL are two ways to implement General Ledger functionality in SAP ECC5 and ECC6. New GL provides lot of benefits over classic GL. The New GL benefits

-          Provide an extension to the existing functionality in classic GL, or

-          Provide new functionality compared to classic GL, or

-          Provide a technologically superior way to perform a functionality in Classic GL

It is imperative to understand the differences between Classic and New GL to be able to understand which solution addresses the business requirements better. I am providing a comparative analysis of the basic differences between Classic and New GL.


(1)   Extended Data Structure provides flexibility

SAP has consolidated the multiple totals table (GLT0, GLPCT, etc) in classic GL into a single FAGLFLEXT Totals table with New GL. One Summary Table provides flexibility and faster response time for reporting. FAGLFLEXT can also be enhanced by adding customer defined fields.


(2)   Segment Reporting to ensure Statutory Requirements

IAS accounting standards define the statutory requirements for segment reporting. New GL has document splitting functionality that enables segment reporting. Standard Segment Reporting functionality is not available in Classic GL.


(3)   Real Time Integration between FI and CO

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


(4)   Parallel Accounting

New GL provides Non-leading ledgers for parallel accounting like IFRS and GAAP. Parallel accounting can also be implemented using Account based approach which is also available in classic GL.


(5)   Reduce TCO by Faster Period Close Activities

Faster Period Close is possible with New GL as,

(a)     Reconciliation Ledger is not required

(b)    Balance sheet Adjustments are not required

(c)     Profit and Loss Adjustment are not required

(d)    Activities related to Special Purpose Ledger are not required

(e)     Depreciation posting is online instead of a batch session


(6)   Flexible Drill-down Reporting in New GL

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



Good and precise,helpful..

Great Blod, great content!

How do I subscribe to this?

very useful and detailed article. thanks

new gl scenario

great post thanks for sharing

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