How To Display Gl Account Hierarchy In Sap

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How to Display GL Account Hierarchy in SAP

If you are using SAP for financial reporting, you might want to display the hierarchy of your general ledger (GL) accounts. A GL account hierarchy is a way of organizing your accounts into groups and subgroups, based on their characteristics and functions. For example, you can group your revenue accounts by product line, your expense accounts by cost center, or your asset accounts by location.

How To Display Gl Account Hierarchy In Sap

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Displaying the GL account hierarchy can help you to analyze your financial data, compare different levels of aggregation, and create reports that meet your business needs. In this article, we will show you how to display the GL account hierarchy in SAP using two methods: the financial statement version (FSV) and the global accounting hierarchy.

Method 1: Display GL Account Hierarchy Using Financial Statement Version

A financial statement version (FSV) is a predefined hierarchy of GL accounts that is used to create financial statements, such as balance sheet and income statement. You can use the FSV to display the GL account hierarchy in SAP by following these steps:

Go to transaction code F.01 or use the menu path Accounting > Financial Accounting > General Ledger > Reporting > Financial Statements > General > Standard.

Enter the company code, fiscal year, and posting period for which you want to display the GL account hierarchy.

Select the FSV that you want to use from the drop-down list. You can also create your own FSV by using transaction code OB58 or the menu path Financial Accounting > Financial Accounting Global Settings > Financial Statement Version.

Click on Execute to display the GL account hierarchy in SAP.

You can expand or collapse the nodes of the hierarchy by clicking on the plus or minus signs. You can also drill down to the individual GL accounts by double-clicking on the node.

Method 2: Display GL Account Hierarchy Using Global Accounting Hierarchy

A global accounting hierarchy is a new feature introduced in SAP S/4HANA 1809 that allows you to maintain hierarchies for different master data objects, such as bank account, cost center, profit center, functional area, product, and consolidation related objects. You can also use it to maintain hierarchies for GL accounts and FSVs. You can use the global accounting hierarchy to display the GL account hierarchy in SAP by following these steps:

Go to transaction code F2918 or use the Fiori app Manage Global Accounting Hierarchies.

Select the object type G/L Account from the drop-down list.

Select the hierarchy that you want to use from the list of available hierarchies. You can also create your own hierarchy by clicking on Create Hierarchy.

Click on Edit Hierarchy to display the GL account hierarchy in SAP.

You can add or remove nodes, change their attributes, and assign GL accounts to them by using the toolbar buttons. You can also drag and drop nodes to change their position in the hierarchy.

Click on Save Draft to save your changes without activating them, or click on Activate Hierarchy to activate them and make them available for reporting.

You can use the global accounting hierarchy in various Fiori apps that support reporting on hierarchies, such as Display Financial Statements, Analyze Profitability, or Analyze Cost Center Actuals.

Benefits of Displaying GL Account Hierarchy in SAP

Displaying the GL account hierarchy in SAP can bring you several benefits, such as:

Improved visibility and transparency of your financial data across different levels of detail and dimensions.

Enhanced reporting and analysis capabilities, as you can use the hierarchy to filter, sort, group, or drill down your data.

Simplified maintenance and governance of your GL accounts, as you can use the hierarchy to assign attributes, validations, or authorizations to them.

Increased flexibility and scalability, as you can use the global accounting hierarchy to create and manage hierarchies for different purposes and scenarios.

Reduced complexity and redundancy, as you can use the extension ledgers to capture only the entries that are different for multiple valuations, such as local GAAP, IFRS, or tax.

Best Practices for Displaying GL Account Hierarchy in SAP

To display the GL account hierarchy in SAP effectively, you should follow some best practices, such as:

Define a clear and consistent naming convention for your GL accounts and hierarchies.

Use the account groups to control the number ranges and field status of your GL accounts.

Use the reconciliation accounts to link your sub-ledger accounts (such as customers or vendors) to your general ledger.

Use the financial statement version to create standard hierarchies for financial statements.

Use the global accounting hierarchy to create custom hierarchies for different master data objects and reporting purposes.

Use the extension ledgers to capture delta postings for multiple valuations.

Use the definable currencies to capture up to eight currencies in your GL postings.

Use the table simplification and compatibility views to improve the performance and compatibility of your GL data.

Challenges of Displaying GL Account Hierarchy in SAP

Displaying the GL account hierarchy in SAP can also pose some challenges, such as:

Complexity and redundancy of maintaining multiple hierarchies for different purposes and scenarios.

Inconsistency and discrepancy of data across different hierarchies and reporting tools.

Lack of flexibility and scalability of the financial statement version hierarchy, as it is limited by the number of nodes and levels.

Lack of integration and compatibility of the global accounting hierarchy with some legacy transactions and reports.

Lack of performance and efficiency of the GL data due to the table simplification and compatibility views.

To overcome these challenges, you should follow some best practices, such as:

Use the global accounting hierarchy as much as possible, as it offers more features and benefits than the financial statement version hierarchy.

Use the extension ledgers to reduce the complexity and redundancy of maintaining multiple valuations.

Use the definable currencies to capture up to eight currencies in your GL postings.

Use the table simplification and compatibility views to improve the performance and compatibility of your GL data.

Use the Fiori apps that support reporting on hierarchies, such as Display Financial Statements, Analyze Profitability, or Analyze Cost Center Actuals.

Tips and Tricks for Displaying GL Account Hierarchy in SAP

Displaying the GL account hierarchy in SAP can also be easier and faster if you follow some tips and tricks, such as:

Use the search function to find the GL accounts or nodes that you want to add, edit, or delete in the hierarchy.

Use the filter function to narrow down the list of hierarchies or nodes that you want to display or work on.

Use the copy function to create a new hierarchy based on an existing one, and then modify it as per your requirements.

Use the import function to import hierarchies from other sources, such as financial statement versions, flexible hierarchies, or other global accounting hierarchies.

Use the export function to export hierarchies to other formats, such as Excel, PDF, or XML.

Use the compare function to compare two hierarchies and identify the differences between them.

Use the change log function to view the history of changes made to a hierarchy and who made them.

Use the validation function to check the consistency and completeness of a hierarchy before activating it.

By using these tips and tricks, you can display the GL account hierarchy in SAP more efficiently and effectively.

Conclusion

In this article, we have learned how to display the GL account hierarchy in SAP using two methods: the financial statement version and the global accounting hierarchy. We have also seen the benefits, challenges, and tips and tricks of displaying the GL account hierarchy in SAP. Displaying the GL account hierarchy in SAP can help you to organize your accounts, analyze your financial data, and create reports that meet your business needs. We hope you have found this article useful and informative.