Configuring Local Accounting Principles in SAP S/4HANA Cloud

This article discusses the setup of local accounting principles in SAP S/4HANA Cloud. The recommended configuration involves assigning the Accounting Principle to the leading ledger (0L) and non-leading ledgers (2L, 3L, and 4G) separately. The leading ledger should be assigned the global Accounting Principle, while non-leading ledgers can have local Accounting Principles assigned. At the company code level, the Local Accounting Principle can be assigned for flexibility and to activate statistical depreciation areas. This setup allows for posting, asset creation, and other system functions to work properly.