Extension ledger.

Extension ledger is new concept in S4 HANA and its used for Management reporting.

Extension leader is used for adjustment purpose for controlling point of view. Extension ledger is used to
post the Controlling related adjustment or any Management related adjustment in CO in closed period.
Since FI and CO are getting merged and any Controlling adjustments posting will now ask for a ledger.
Earlier it was not required as CO was not attached with any ledger and now CO is part of Universal.

Extension ledger should have underlying ledger and it can be Leading ledger or Non Leading ledger and
all posting in underlying ledgers are updated to Extension ledger but same is not available in the
ACDOCA (no physical data of extension ledger is stored in ACDOCA) but in GL reports you can see the
extension ledger data.

Physical data of extension ledger is updated only when you do ledger specific postings. In this case you
can see the extension ledger data in ACDOCA.

Extension ledger reduces duplication of data as its don’t store all physical data in Table.

We can create any number of extension ledgers.

When you create Extension Ledger and Assign Underlying ledger to it. Some of the settings are copied
from Underlying ledger to Extension ledger and you can’t change it like Fiscal year Variant and
Accounting principle and local/ group currency. But you can have different posting period variant for
Extension ledger so you can open posting period in extension ledger although the same is closed in
underlying ledger. So you can post adjustment entries in closed period also.

When we use Extension Ledger

We have 2 Ledgers in the company code.

0L Leading Ledger –Acc Principle - IFRS – Fiscal Variant -K4 - 10 and 30 currency.

N1 Non leading ledger – Acc Principle - GAAP- Fiscal Variant -V3 – 10 and 30 currency.

Business need one more accounting principle USGAAP ledger with fiscal year K4

Here Fiscal year K4 is same for Leading Ledger and New ledger USGAAP so we don’t need to create Non-
Leading ledger. We can create Extension ledger with underlying ledger as 0L and also can have different
posting period variant for this extension ledger.

Example ---

KB11N- Manual Reposting of primary costs.

If period of underlying ledger is closed and you want to do the postings. You can select the extension
ledger in KB11N and do the reposting. So this can be done without disturbing you leading ledger or
underlying ledger. So without disturbing leading ledger we can do the CO adjustments in Extension
ledger.