SAP New GL Migration Benefits

HPC has implemented SAP's New General Ledger—a.k.a., the SAP New GL—at several utility companies, and we've noticed that it's under even greater consideration these days, as utilities seek to eliminate the reconciliation steps necessary under the Classic GL.

In our experience, the SAP New GL offers terrific benefits for utilities running the IS-U/FERC module and IS-Public Sector (PS-FM) in the same ECC 6.0 client—two modules common to the public power industry. Implemented properly, the SAP New GL can dramatically shorten the processing time for the month-end allocations such as distributions, assessments, and overheads

In many cases, existing SAP customers on the FERC module can migrate to the New GL with the delivered leading ledger (OL) by SAP without having to create a new parallel ledger. This process works because the FERC module is an FI-GL solution, as opposed to a special ledger solution as some other industry-specific solutions have been designed.

We also have good experience combining non-FERC company codes with FERC-relevant company codes to consolidate reporting for profit and loss (P&L) statements and balance sheets.

While some utilities are driven to migrate to the New GL because it speeds up month-end closing by reducing the number of updates required to keep FI and CO in sync, there are other reasons to undertake a New GL migration. Implementing the New GL with the FERC module is ideal, as it provides access to FERC data in real time; what you see in your orders will also appear in your FERC regulatory reports. You get "one version of the truth" as we like to say, with the same codes and no special month-end processes required.