Change from IFRS to US GAAP once Q-system has been requested

[stewe]

In the course of filling out the Q-system questionnaire one of the following options has to be chosen to finally set up the system:

• Local GAAP only
• Local GAAP and IFRS (Local GAAP as leading ledger)
• Local GAAP and IFRS (IFRS as leading ledger)
• Local GAAP and US GAAP (Local GAAP as leading ledger)
• Local GAAP and US GAAP (US GAAP as leading ledger)

At this stage our customer would apply for the system with Local GAAP and IFRS (Local GAAP as Leading Ledger). Considerung

potential re-organization on group level at a later stage, we need to know whether and under what conditions a change to from

IFRS to US GAAP is possible?

The possibility to run Local GAAP (0L) + IFRS (2L) + US GAAP (3L) in parallel does not exist according to below description:

It should be noted that it is not possible to add IFRS or US GAAP as ledger or parallel ledger at a later stage if you start with local GAAP only.

Nor is it possible to change which ledger work as the leading leger at a later stage.

If you choose "local GAAP only" or "local GAAP and IFRS" the following scope item will not be activated:

• 2VA - Accounting and Financial Close - Group Ledger US GAAP
• 33F - Asset Accounting - Group Ledger US GAAP
• 33G - Asset Under Construction - Group Ledger US GAAP
• 33V - Contract Accounting - Group Ledger US GAAP
• 34C - Debt and Investment Management - Group Ledger US GAAP
• 33O - Event-Based Revenue Recognition - Project-Based Services - US GAAP
• 33J - Event-Based Revenue Recognition for Sell from Stock - US GAAP
• 34D - Foreign Currency Risk Management - Group Ledger US GAAP
• 34L - Intercompany Debt and Investment Mgmt - Group Ledger US GAAP
• 34M - Intercompany Foreign Exchange - Group Ledger US GAAP
• 34E - Interest Rate Derivatives Management - Group Ledger US GAAP
• 34N - Lease-In Accounting - Group Ledger US GAAP
• 34O - Lease-Out for Sublease Accounting - Group Ledger US GAAP
• 34G - Money Market Mutual Fund Management - Group Ledger US GAAP
• 34F - Trade Finance Management - Group Ledger US GAAP

If you choose "local GAAP only" or "local GAAP and USGAAP" the following scope item will not be activated:

• 1GA - Accounting and Financial Close - Group Ledger IFRS
• 1GB - Asset Accounting - Group Ledger IFRS
• 1GF - Asset Under Construction - Group Ledger IFRS
• 33X - Contract Accounting - Group Ledger IFRS
• 1X7 - Debt and Investment Management - Group Ledger IFRS
• 1P0 - Event-Based Revenue Recognition - Project-Based Services - IFRS
• 33M - Event-Based Revenue Recognition for Sell from Stock - IFRS
• 1X9 - Foreign Currency Risk Management - Group Ledger IFRS
• 2OI - Intercompany Debt and Investment Mgmt - Group Ledger IFRS
• 2HU - Intercompany Foreign Exchange - Group Ledger IFRS
• 1XB - Interest Rate Derivatives Management - Group Ledger IFRS
• 21P - Lease-In Accounting - Group Ledger IFRS
• 2SA - Lease-Out for Sublease Accounting - Group Ledger IFRS
• 2UO - Money Market Mutual Fund Management - Group Ledger IFRS
• 2O2 - Trade Finance Management - Group Ledger IFRS
• 1XD - Hedge Accounting for FX Forward supporting IFRS 9
• 2RW - Hedge Accounting for FX Option supporting IFRS 9
• 2UF - Hedge Accounting for FX Swap supporting IFRS 9

Thanks very much in advance!

SteWe

[Cora_Phelan · Accepted solution]

See note https://launchpad.support.sap.com/#/notes/2836759 - SAP S/4HANA Cloud 1911: Release Restriction Note

In this note the following is stated:

....

Ledger bundles are possible for three following options only:

Local ledger only

Local ledger + IFRS (free choice of which should be leading)

Local ledger + US GAAP (free choice of which should be leading)

Ledger setup cannot be reverted after initial activation

[Nadja_Medeiros]

Hi Stewe,

Currently is S4HC there is no condition that will allow you to change the ledger setup after system provisioning.

The ledger switch mentioned in the documentation is a decision to be made before requesting the system (there is no subsequent ledger switch). T

There is no subsequent ledger implementation supported in Cloud as well, as per of the current release.

The recommendation is to start with the parallel ledger approach as you cannot add any other ledger in the future, guaranteeing this way that any future business change will be already accommodated by the system setup.

There is some direction of the product pointing to add the Extension ledger functionality ( but this is planned/not confirmed to 1905 release). I hope it helps!

KR,

Nadja

[stewe]

Thanks a lot, Naja!

[Mohamed_Cassim]

Hi Nadja,

We would also like to have an extension ledger for the purpose of restating financial statements for management accounting.

Thanks,

Mohamed