What is extension ledger in SAP AC - Accounting - General?

SAP Term: extension ledger

• Component: AC

• Component Name: Accounting - General

• Description: A ledger that extends a standard ledger. When an extension ledger is read, the data of its underlying standard ledger is automatically read as well. An extension ledger can contain its underlying ledger plus adjustment postings such as for management reporting purposes. An extension ledger can also represent an accounting principle such as IFRS or US GAAP. In this case the underlying ledger contains the common data, while the extension ledger contains the data that is specific to the accounting principle.

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• Key Concepts: 
  Extension ledger is a feature of SAP Accounting - General Ledger Accounting that allows users to create additional ledgers to supplement the existing general ledger. This feature allows users to create additional ledgers for specific purposes, such as tracking different currencies, different fiscal years, or different business areas. 
  
  How to use it: 
  To use the extension ledger feature, users must first create a new ledger in the SAP system. This can be done by navigating to the “Create Ledger” menu in the SAP system and entering the necessary information. Once the ledger is created, users can then assign it as an extension ledger to an existing general ledger. This will allow users to track transactions in both ledgers simultaneously. 
  
  Tips & Tricks: 
  When creating an extension ledger, it is important to ensure that all of the necessary information is entered correctly. This includes the currency, fiscal year, and business area associated with the ledger. Additionally, it is important to ensure that all of the accounts in the extension ledger are properly mapped to their corresponding accounts in the general ledger. 
  
  Related Information: 
  For more information on using extension ledgers in SAP Accounting - General Ledger Accounting, please refer to SAP’s official documentation on the topic. Additionally, there are many online resources available that provide step-by-step instructions on how to set up and use extension ledgers in SAP.