New asset accounting features
Fixed asset accounting based on universal journal
After new asset accounting migration, previous year reporting is
possible due to compatibility views.
We have an option of assigning the depreciation is to accounting
principle.
Here we can segregate the accumulated depreciation and depreciation
asset wise, but it is not happening now in classic asset accounting.
Simplified chart of depreciation, only one depreciation area per
valuation is necessary, no delta depreciation areas required for
parallel valuation, but which is happening now in classic asset
accounting.
Flexible account determination and no more FI-AA reconciliation is
required.
Posting to different periods possible, but beginning /end of the FY
need to be equal.
New transactions for accounting principle, depreciation area specific
documents.
The beauty of new asset accounting is always systems will posts the
separate documents per each accounting principle, like ledger specific
document in new GL.
Depreciation postings will happen each asset wise.
The traditional asset tables like ANEK, ANEP, ANEA, ANLP & ANLC now
replaced with ACDOCA and ANEK table data will be replaced with BKPF;
we will call ACDOCA as a universal journal table.
In new asset accounting technical clearing account acts as a zero
balance clearing account in new GL and it is a offsetting account.
In new asset accounting after posting the document, the display
document in FB03 contains the special tab of Asset accounting display,
once you click on this document it will give you the accounting
principle wise posted accounting document, here the technical clearing
account will acts as a offsetting account in both the accounting
principles.
In AW01N transaction you have hierarchical views for both accounting
principles and we can differentiate the same.
The AFAB depreciation screen modified completely and you can give the
company code range in AFAB screen, accounting principle specific we
can run the depreciation.
Now the reason for posting run options are obsolete in AFAB.
In the classic asset account, system won't allow you to post any
depreciation if you have errors in depreciation run, but now in new
asset accounting, you can exclude the errors and can execute the
depreciation for other assets, like cost estimate for materials in
CK40N.
Former IMG activity reset posted depreciation is obsolete due to
redesign of depreciation run.
Balance Carry forward:
AT THE TIME OF POSTING SIMULATE ASSET ACCOUNTING WILL APPEAR
WE CAN SEE THE DOCUMENT POSTED WITH LEDGER GROUPWISE
AT DEPRECIATION RUN-WE GET ACCOUNTING PRINCIPLE-RUN DEPRECIATION
ACCOUNTING PRINCIPLEWISE
NOT GIVEN REPEAT/RESTART/UNPLANNED POSTING RUN
AT THE TIME OF ASSET TRANSFER WE CAN GIVE ACCOUNTING PRINCIPLE AND
DEPRECIATION AREA. IF WE DO NOT GIVE SEPARATELY IT TAKES ALL LEDGERS
i.e., LEADING AND NON-LEADING LEDGERS.
AT THE TIME OF ASSET SCRAPPING WE CAN GIVE ACCOUNTING PRINCIPLE AND
DEPRECIATION AREA. IF WE DO NOT GIVE SEPARATELY IT TAKES ALL LEDGERS
i.e., LEADING AND NON-LEADING LEDGERS.
CAPITAL WORK IN PROGRESS-LINE ITEM SETTLEMENT-WE HAVE TO SELECT ASSET
LINE ITEMS AND TECHNICAL CLEARING ACCOUNT LINE ITEMS
Define depreciation area for quantity update (if necessary):
Financial Accounting (New) -> Asset Accounting (New) -> General
Valuation -> Depreciation Areas -> Define Depreciation Area for Quantity
Update
Quantity updates in real time is possible for depreciation areas
other than 01. This function is especially relevant in case of collective
low-Value assets. Currently the system uses depreciation area 01 for
updating quantities unless we have configured different depreciation area
for the same.
Smoothing is no more relevant (and available) any more
For representing parallel accounting in New asset accounting, you have two
scenario's as mentioned below.
Using Parallel ledgers: The Ledger approach
Using Additional accounts: The Accounts approach
Ledger approach:
1. Different accounting principles or valuation are mapped in separate
ledgers, as in new General ledger accounting. In general, the same
accounts are used in the ledgers.
2. The depreciation areas have equal status. Separate documents are
posted for each accounting principle or valuation.
3. For each accounting principle or valuation, the system posts the
correct values in real time. The values that are posted are full
values and not delta values.
4. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. For this
leading depreciation area, choose the posting optionArea Posts in
Realtime. This applies both for the leading valuation and for all
parallel valuations. You can choose which of these depreciation areas,
which post to the general ledger, posts to the leading ledger.
5. One or more depreciation areas represent a valuation. You must assign
an accounting principle uniquely to all depreciation of a valuation.
For each valuation, the accounting principle has to be assigned to a
separate ledger group. The ledgers of these ledger groups
arenot allowed to overlap.
6. Differences in values in each accounting principle: You can enter
documents that are valid only for a certain accounting principle or
valuation. To do so, when entering the business transaction, you can
restrict the posting to the accounting principle or to one or more
depreciation areas.
7. You can assign different fiscal year variants to each type of
valuation. (There is a restriction in this case: The start dates and
end dates of the fiscal year variants must be the same.) If the dates
of FY are different then AA MCT need to be enhanced accordingly.
8. Within an asset class, it is possible to make a simple assignment of
different G/L accounts (such as, reconciliation accounts for APC and
value adjustments) for each valuation.
9. If you have defined parallel currencies in new General Ledger
Accounting, and you want to use these currencies in new Asset
Accounting, you are required to create – for the leading valuation and
the parallel valuations – the necessary depreciation areas for each
currency.
10. Managing quantities: In the standard system, depreciation area 01 is
intended for the quantity update. If needed, you can specify a
different depreciation area for the quantity update. However, this has
to be a depreciation area that posts to the general ledger. The
quantity – if it is to be managed on the asset – is updated in the
asset master record only when a posting is made to this different
depreciation area.
Different Fiscal Year Variants:
You can enter a separate fiscal year variant for each depreciation area in
Asset Accounting. The start and end dates of this fiscal year variant have
to be the same as the start and end dates of the fiscal year variant of the
company code. As part of the ledger approach, the system also allows a
posting in a representative ledger, to which any fiscal year variant is
assigned. The system then derives the period from the posting date. The
depreciation, however, is determined as before using the fiscal year
variant of the depreciation area of the posting.
Accounts Approach:
1. You represent different valuations on different accounts within the
same general ledger. This means that you have to create the same set
of accounts again for each parallel valuation.
2. Separate documents are posted for each accounting principle or
valuation.
3. For each accounting principle or valuation, the system posts the
correct values in real time. The values that are posted are always
full values andnot delta values.
4. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. The
following applies for these posting depreciation areas:
1. For the leading valuation, choose the posting optionArea Posts
in Realtime.
For the parallel valuations, choose the posting optionArea
Prerequisites for new asset accounting:
1.Enterprise Business function activation EA-FIN is required for FI-AA
(new) and FIN_AA_parallel_val under Enterprise Business functions.
2.For every additional currency type defined on the company code a
corresponding depreciation area need to be set up.
3.DEFINE ACCOUNTING PRINCIPLE
4.DEFINE SETTINGS FOR JOURNAL ENTRY LEDGER
SAVE
5.ASSIGN ACCOUNTING PRINCIPLE TO LEDGER GROUPS
6.Copy Chart of Depreciation
7.copy/delete depreciation areas
Select area 01-select details button
Select area 15-select details button
Select area 35-select details button
save
8. Assignment of chart of depreciation to company code –error message-
SPRO->FINANCIAL ACCOUNTING->ASSET ACCOUNTING->GENERAL VALUATION-
>DEPRECIATION AREAS->SPECIFY TRANSFER OF APC VALUES
Transfer apc values-by default for deprn area 35-01 will appear.
Remove 01-then enter
NOTE: THE SAME WAY WE HAVE TO DO FOR TRANSFER DEPRECIATION VALUES
9.Assign Chart of Depreciation to company code-
10.specify account determination
11.create screen layout rules
12.Define number range interval
13.Define Asset Classes
14.Define screen layout for asset master data
"IN SCREEN LAYOUT WE SPECIFY COST CENTER REQUIRED FOR "
"ASSET MASTER CREATION. " " " " "
15.Define screen layout for asset depreciation areas
14.Determine Depreciation areas in the asset class (oayz)
16.CREATION OF GL MASTERS
350001-ASSET SALE ACCOUNT-NON-OPERATING INCOME
350002-PROFIT ON ASSET SALE-NONOPERATING INCOME
450001-LOSS ON ASSET SALE-NONOPERATING EXPENSES
450002-LOSS DUE TO SCRAPPING-NONOPERATING EXPENSES
400500-DEPRECIATION-OPERATING EXPENSES-COST ELEMENT CATEGORY 1
"17.CREATION OF TECHNICAL CLEARING ACCOUNT "FS00 " "
"CREATE 200010-TECHNICAL CLEARING-RECONCILIATION ACCOUNT "
"FOR ACCOUNT TYPE-ASSETS " " " " "
"COPY A/C 200000 AND CREATE TECHNICAL CLEARING ACCOUNT "
18.ASSIGNMENT OF ACCOUNTS FOR AUTOMATIC POSTINGS –AO90
"POSTING OF TRANSACTION- " " " " " "
"ASSET 1-0 DR "1000000 "TECHNICAL CLEARING A/C-200010 "
" " " " " " " " "
"TO VENDOR A/C "1000000 " " " " " "
" " " " " " " " "
"GENERAL LEDGER VIEW: " " " " " "
"70-200010-TECHNICAL CLRG DR "1000000DR " " " "
"31-100501-SUNDRY CREDITORS "1000000CR " " " "
"ASSET ACCOUNTING VIEW: " " " " " "
"70-200010-TECHNICAL CLRG DR "1000000DR " " " "
"31-VENDOR A/C " "1000000CR " " " "
" " " " " " " " "
"70-200000-PLANT&MACHINERY DR "1000000DR " " " " "
"75-200010-TECHNICAL CLRG A/C "1000000CR " " " "
" " " " " " " " "
"SAP NOTE:TO ENABLE PARALLEL POSTINGS TO DIFFERENT LEDGERS "
"SYSTEM USES A TECHNICAL CLEARING ACCOUNT FOR ASSET " "
"ACQUISITIONS. THIS IS REQUIRED FOR A TECHNICAL PURPOSE AND " "
"THE BALANCE OF THIS ACCOUNT IS ALWAYS ZERO AFTER EACH " "
"POSTING. THE TECHNICAL CLEARING ACCOUNT MUST BE A " " "
"RECONCILIATION ACCOUNT FOR ASSETS AND IT CAN NOT BE USED " "
"IN ACCOUNT DETERMINATION FOR ASSET ACCOUNTING. " " "
19.Define technical clearing account for integrated asset acquisition
20.specify document type for posting of depreciation
21.specify intervals and posting rules
"22.SPECIFY ACCOUNT ASSIGNMENT TYPES FOR ACCOUNT " "
"ASSIGNMENT OBJECTS " " " " " "
"23.SPECIFY ROUNDING OF NET BOOK VALUE AND/OR DEPRECIATION "
"24.DEPRECIATION KEYS CREATION " " " " "
"25.TO MAKE COST CENTER FIELD OPTIONAL ENTRY FIELD FOR "
"FIELD STATUS GROUP G067 " "OBC4 " " "
ERROR MESSAGE WHILE POSTING:
RUN PARALLEL VALUATION-
SOLUTION:
26.Migrate Chart of depreciation
SPRO->FINANCIAL ACCOUNTING->ASSET ACCOUNTING->MIGRATION ASSET ACCOUNTING
(NEW) -> MIGRATION (CLASSIC) TO NEW ASSET ACCOUNTING-> MIGRATION FOR NEW
ASSET ACCOUNTING-> MIGRATE CHART OF DEPRECIATION
SELECT UPDATE RUN AND EXECUTE
27.WHEN NEW PACKAGE IS GIVEN IT GIVES AN ERRO MESSAGE –CHART OF
DEPRECIATION 0DE NOT ASSIGNED TO COMPANY CODE 003.
GO TO ASSIGN CHART OF DEPRECIATION TO COMPANY CODE SCREEN-
REMOVE 0DE AND SAVE
28. ACTIVATE ASSET ACCOUNTING NEW
SPRO->FINANCIAL ACCOUNTING->ASSET ACCOUNTING->MIGRATION ASSET ACCOUNTING
(NEW) -> MIGRATION (CLASSIC) TO NEW ASSET ACCOUNTING-> MIGRATION FOR NEW
ASSET ACCOUNTING->ACTIVATE ASSET ACCOUNTING NEW
By default in preparation radio button will be selected.
Select active radio button
"INDIAN INCOME TAX DEPRECIATION IN SIMPLE FINANCE- " " " " " "
"1.ACTIVATE BUSINESS FUNCTION " " " " " " " "
"2.CHECK COUNTRY SPECIFIC SETTINGS " " " " " " " "
"3.COPY REFERENCE CHART OF DEPRECIAN/DEPRECIATION AREAS " " " " "
" " " " "EC08 " "
" " " " "OAOB " " " "
"6.CREATE SCREEN LAYOUT RULES " " " " " " " "
"7.DEFINE NUMBER RANGE INTERVAL " " " " " " " "
"8.DEFINE SCREEN LAYOUT FOR ASSET MASTER DATA " " " " " "
" "ALREADY " " " "
" "COMPLETED " " " "
" "ALREADY COMPLETED" " " " " "
" " " " " " "
"12.ASSIGN TAB LAYOUTS TO ASSET CLASSES " " " " " " "
"13.DEFINING DEPRECIATION AREAS " " " " " " " "
"14.DETERMINE DEPRECIATION AREAS IN THE ASSET CLASS " " " " " "
"15.ACTIVATE COUNTRY SPECIFIC DATA " " " " " " " "
"16.MAINTAIN TAX DEPRECIATION AREA " " " " " " " "
"17.MAINTAIN ASSET BLOCK DETAILS " " " " " " " "
"END USER AREA: " " " " " " " "
"2.ASSET PURCHASE POSTING " " " " " "
"END USER AREA: " " " " " " "
"1.MAIN ASSET MASTER CREATION " "AS01 " " " "
" " "1-0 " " " " " "
"2.MAIN ASSET PURCHASE POSTING " "F-90 " " " "
"3.TO VIEW EACH SUB-ASSETWISE YEARWISE VALUES " " " "
"4.DEPRECIATION RUN " " " " " " "
" " " " " " " " "
"CHANGES " " " " " " "
" " "EHP6 " "SIMPLE FINANCE " "
"ACCOUNTING PRINCIPLE "NOT AVAILABLE "AVAILABLE " " "
" " " " " " " " "
"REPEAT/RESTART/ " " " " " " "
"UNPLANNED POSTING RUN "AVAILABLE " "NOT AVAILABLE " "
" " " " " " " " "
"DETAIL LOG/TOTAL LOG "NOT AVAILABLE "AVAILABLE " " "
"5.ASSET TRANSFER "ACCOUNTING PRINCIPLE LEVEL " " "
" " " " " " " " "
"ASSET TRANSFER IN ONE STEP METHOD- " " " " " "
"i) DEFINE SCREEN LAYOUT FOR ASSET DEPRECIATION AREAS " " "
" " " "AO21 " " " " "
"ii)DETERMINE DEPRECIATION AREAS IN THE ASSET CLASS " " " "
" " " "OAYZ " " " " "
"iii)CREATION OF PROFIT CENTER STEEL1 FOR BANGALORE " " " "
"SEGMENT " "KE51 " " " " "
"iv)CREATION OF COST CENTER FOR BANGALORE "KS01 " " " "
"v)ASSET TRANSFER IN ONE STEP METHOD " "ABUMN " " " "
" " " " " " " " "
"OTHER CHANGES IN ASSET ACCOUNTING- " " " " " "
" "OLD CODES " " "NEW CODES " " "
" "AB01 " " "AB01L " " " "
" "ABAA " " "ABAAL " " " "
" "ABAK " " "ABAKL " " " "
" "ABST " " "ABSTL " " " "
Different fiscal year variants for leading ledger and non-leading ledger:
1.Define accounting principle
2.Define non-leading ledger 1 and 2
Leading ledger-apr to march
Non-leading ledger 1-jan to dec
Non-leading ledger 2-apr to march
3) Create a ledger group containing of both non-leading ledgers: different
FY and the one from the step before marking this as representative
4) Assign this ledger group to the parallel valuated depreciation area
We are already using new G/L and are on EhP7. Now we want to activate new
asset accounting. Some company codes use a different fiscal year defined in
a non-leading ledger. To handle this there's a workaround described in SAP
note 2220152:
a) Assign company code to an additional non-leading-ledger assigned to the
same fiscal year variant as the leading ledger
b) Create a ledger group containing of both non-leading ledgers: different
FY and the one from the step before marking this as representative
c) Assign this ledger group to the parallel valuated depreciation area
STEPS REQUIRED: sap note no. 2220152
1.Define Accounting principle
X1-indian accounting standards
X2-IFRS
2.Define settings for ledgers and currency types
0L-leading ledger-fiscal year variant v3
X1-non-leading ledger1-fiscal year variant k4-accounting
Principle-x2
X2-non-leading ledger1-fiscal year variant v3-accounting
Principle-x2
3.Define ledger group
For ledger group x3-
Assign ledgers-
X2-select representative ledger check box
X1-deselect non-representative ledger check box
4.Assign accounting principle to ledger groups
Accounting principle ledger group
X1
0L
X2
X3
5.Copy chart of depreciation-0in
SAP S/4HANA Finance
Fiscal Year variant in Company Code have different end
oadb-settings.pngHi All,
We are in the process of migrating to S/4HANA and got an error while
running the pre-migration check program RASFIN_MIGR_PRECHECK. The error is
"Fiscal Year variant in Company Code XXXX have different end dates". We are
using New GL and have created non-leading ledgers are per local
requirements.
The Fiscal year variant (FYV) of the leading ledger does differ from the
fiscal year variant of the non-leading ledgers. Hence we are getting the
issue during the migration check.
We found SAP notes "2220152 - Ledger approach and Asset Accounting (new):
Non-calendar fiscal year variant for parallel valuation" and "844029 -
Inconsistent fiscal year variant with ledgers in the NewGL" which talks
about creation of additional ledgers and ledger groups to resolve the
issue.
Our queries are as follows:
1. Is the solution specified under notes 844029 and 2220152 are the only
solutions available or are there are any solution which can be evaluated?
2. Suppose the solution available under the above notes is the only
solution, and we have the current setup
Main ledger: 0L (FYV X1)
Non leading ledger: L1 (FYV Z6)
As per the solution we create the following:
New Non leading ledger : L2 (FYV X1)
Ledger Group Z1: L1 and L2 and make L2 as the representative ledger
We assign the new ledger group Z1 under parallel valuation in OADB to the
local depreciation area. Our question is, prior to the change the local
depreciation postings were happening as per the local FYV Z6, since ledger
L1 was assigned to it. After the configuration change the local
depreciation postings will happen as per which FYV, since it has now been
assigned to the ledger group Z1, where the representative ledger is L2?
Regards
Vivek
Additional ledger constrain in New asset accounting for S4 HANA
Hi Friend,
My company is in Hana on cloud and we are planning to go for S/4 HANA
Finance ( Simple finance) next year July. For S/4 Hana Finance we have to
move to new asset accounting from classic asset accounting. According we
have decided to move with the ledger approach with new asset accounting.
My client is a UK based company with legal entities spread across the
countries.
For legal reporting we follow the April to March reporting period for all
company codes but for local reporting we have to abide by country specific
tax requirement. For example countries Russia and Mexico the leading
ledger(0L) is maintained in April to March fiscal year but for local
report Jan to December fiscal year is maintained.
Hence at the time of migration of Chart of depreciation ( one of the step
post installation of Simple finance alias SFin 1503 alias S/4 Hana Finance)
, system gives a error message start and end end of the leading and non
leading ledger is not same. As with new asset accounting there will be real
time posting in both the books (i.e leading and non leading ledger) . SAP
has recently introduced a note with more clarity on the topic. The SLO
service mentioned in the note is a work around to abide by the issue of
asset accounting rather can completely solving.
SAP note 2220152 - Ledger approach and Asset Accounting (new): Non-calendar
fiscal year variant for parallel valuation
Good to have your view on the same as we are stuck.
Regards
Shikha
Tags:
2 replies
Vikash Kumar Tulsyan replied
December 01, 2015 at 19:20 PM
Hi Shikha,
You can perform the steps outlined in the note 2220152 and issue will be
resolved. Unless you have different start and end date between 0L and Non
leading ledger you need not have to go with SLO service.
Defined a ledger group and assign a ledger (create a dummy one) which has
the same fiscal year variant as leading ledger and add the non leading
ledger and assign this ledger group to your parallel depreciation area and
issue will be resolved.
Regards,
Vikash
0 likes
Shikha Gupta replied
December 02, 2015 at 11:45 AM
Hi Vikash,
The reason we are stopping is because for Russia legal entity we have a
different fiscal year in leading and non leading ledger.
Current scenario
"Ledger "Representati"FYV "Additiona"FYV of "Accounting"
"Group "ve ledger " "l Ledger "Add "Principle "
" " " " "Ledger " "
"0L "0L "Z4 "- "- "IFRS "
"Z2 "Z2 "ZZ " " "LOCL "
To fix we need to create additional ledger Z1 with fiscal year as April to
Mar (same as per leading) and make that as representative ledger and assign
in the ledger group with the old non - leading Ledger
"Ledger "Representat"FYV "Addition"FYV of "Accountin"
"Group "ive ledger " "al "Add "g "
" " " "Ledger "Ledger "Principle"
"0L "0L "Z4 "- "- "IFRS "
"Z3 "Z1 "Z4 "Z2 "K4 "LOCL "
This entire configuration needs to be done before the simple finance
installation as SAP suggest to populate values in the new Z1 Ledgers before
the table structure changes in S/4 Hana Finance.
But the bottleneck is SAP suggests an SLO service which in simple term is
Table update is not sure to resolve this. This is a work around for asset
accounting to work.
Also the source ledger for Z1 to copy values cannot be Z2 ledger as the
fiscal year variant for them is not same neither it cant be 0L Ledger due
to local statutory reporting posting made only in non leading ledger. This
becomes a stop stopper for S4 Hana Finance.
Regards
Shikha
SAP note 2220152 – Ledger approach and Asset Accounting (new): Non-calendar
fiscal year variant for parallel valuation
Regards
Eugene
like (0)
1. Abhay ParekhSeptember 19, 2016 at 10:51 am
Thanks for sharing the document… It will help a lot in HANA implementation
but one thing i would like that why SAP has not allowed to get LSMW,BDC for
ABLDT.. Don't you think it wierd thing?? D
like (0)
1. Ranu Eugene Post authorSeptember 19, 2016 at 11:23 am
Hi Abhay,
Thanks for encouraging words.
Yes there is no LSMW or BDC for ABLDT which is bit weird.
Regards
Eugene
like (0)
Subsequent implementation of an additional ledger
Hello,
We are already using new G/L and are on EhP7. Now we want to activate new
asset accounting. Some company codes use a different fiscal year defined in
a non-leading ledger. To handle this there's a workaround described in SAP
note 2220152:
a) Assign company code to an additional non-leading-ledger assigned to the
same fiscal year variant as the leading ledger
b) Create a ledger group containing of both non-leading ledgers: different
FY and the one from the step before marking this as representative
c) Assign this ledger group to the parallel valuated depreciation area
STEPS REQUIRED:
The current version of note 2220152 dated Dec 2015 states the following:
"Existing customers must ensure that correct values exist in the new
representative ledger L2 . In addition, a migration of the data (with
migration scenario 7) is absolutely vital. For more information about the
migration and the absolutely necessary SLO migration service,
see www.service.sap.com/glmig."
If we follow this recommendation we face tremendous challenges for our new
asset accounting implementation. Furthermore we plan at a later point to
switch to S/4HANA which is baed on new asset accounting.
Now, knowing that this ledger assignment (step A above) is only a techical
prerequisite done to enable the config of New Asset Accounting the data in
the additional ledger is irrelevant and will never be analyzed or used.
Could anybody share some experiences or insights if we really need to go
that route and perform a new G/L migration with the connected effort, time
and cost? What would happen if we don't do that? I have worked on New asset
accounting last year, implemented this in a sandbox w/o any migration. The
handful asset tests we performed were alright.
Thanks,
Joachim
Joachim Nerreter
January 28, 2016 at 11:35 AM
0 Likes
Helpful Answer
by
Sanil Bhandari
Sanil Bhandari
Ajay Maheshwari SAP Trainer
Ajay Maheshwari SAP Trainer
Ajay Maheshwari SAP Trainer
13 replies
Helpful Answer
Sanil Bhandari replied
January 12, 2016 at 17:06 PM
Hi
We are in the process of migration to S/4 HANA Finance 1503 edition. We had
a similar situation where our leading ledger had fiscal year from April to
March and non leading ledger had a fiscal year from Jan to Dec or June to
July depending on the geography. We have used a technical ledger with the
same fiscal year as leading ledger to allow the transactions to go through.
However, local GAAP reporting still remains a challenge for non leading
ledger since the above solution only allows the transactions to be posted
for assets, but if i want to look at a block of assets for local GAAP the
reports do not work. We are developing a custom report to tide over that.
SAP also has an additional tool, where a dummy company code is created and
data migrated to the dummy company code for reporting. But you will have to
check with the SLO or LT team within SAP for the same as there is
additional license fee involved.
New Asset Accounting in itself is mandatory for S/4 HANA Finance and you
will have to activate the same during migration. Given my exp, it is easier
to develop based on ACDOCA rather than Suite on HANA. So unless there is
pressing business requirement for new asset accounting functionality, you
may want to do this as a part of your S/4 HANA Finance Journey.
Thanks & Regards
Sanil Bhandari
0 likes
Joachim Nerreter replied
January 12, 2016 at 18:24 PM
Hello Sanil,
If I understand you correctly you have created a new non-leading ledger as
I described in my posting above without performing a G/L migration
(scenario 7). Is that correct? And you don't face any issues with that
"technical" ledger which you have only to allow postings to go through?
Because this was exactly my question.
However, you recommend not to implement New Asset Accounting at this point
of time but rather at the same time the migration to S/4HANA takes place. I
would have expected that the S/4HANA Finance (formerly known as Simple
Finance) would be easier if New Asset accounting is already in place.
Initially we planned to go-live with S/4HANA Finance in one step: SoH, new
asset accounting and activation of Simple Finance. We found that transfer
prices are not supported as of now and reduced the scope to SoH. The idea
would be to further minimize the risk and effort by decoupling New Asset
accounting activation and the Simple Finance add-on activation. Any
comments on that?
You wrote: "However, local GAAP reporting still remains a challenge for non
leading ledger since the above solution only allows the transactions to be
posted for assets, but if i want to look at a block of assets for local
GAAP the reports do not work. We are developing a custom report to tide
over that."
Can you explain that and let me know what you mean? I don't fully
understand.
Thank you,
Joachim
0 likes
Helpful Answer
Sanil Bhandari replied
January 13, 2016 at 10:13 AM
Hi
We have 240+ Company Codes with almost 100+ Company codes having this
issue. We have not faced any technical issues yet and we are in Integration
testing 3 phase of the S/4 HANA Finance Project.
I believe the New Asset Accounting should be activated with S/4 HANA
Finance transformation since there are fundamental changes on the
accounting itself for assets and it is easier to go in for this kind of
changes in terms of user adoption and changes. Secondly, my suggested
change of a technical ledger works in New GL, however, standard Asset
Reports still report based on the fiscal year of leading ledger. In our
case the leading ledger is from April to March and multiple markets have
fiscal years from June -July or Jan -Dec. So in such a case, we are
developing a custom report and such a report works much more easily on
ACDOCA rather than on the new GL Tables. So unless it is a very pressing
business requirement which is addressed by New Asset Accounting, I would
rather prefer to go as a one step for New Asset Accounting plus S/4 HANA
Finance.
Hope that answers your questions.
Regards
Sanil Bhandari
0 likes
Joachim Nerreter replied
January 13, 2016 at 11:51 AM
Hello Sanil,
Wow, a huge number of company codes, is this in a single instance? We have
> 150 company codes within one instance/SAP system. A few of them need this
"technical" ledger because they are using different FY. Some already use
different FY. I can cinform what you are saying as this is not new to us:
the asset reports are always based on the FY of the company, no matter what
depreciation area you use - with same of different FY. I take it that's no
issue for accountants since they live with that w/o complaining.
I understand that you are still implementing S/4 HANA Finance so you
haven't seen the "technical" ledger in a live system - and can tell if
that's an issue or not. Correct? I opened a message to SAP to ask if the
migration scenarion is really necessary...
Thanks,
Joachim
0 likes
Joachim Nerreter replied
January 19, 2016 at 09:06 AM
Hello Sanil,
I'm coming back to the question if an additional ledger causes issues when
not migrated properly with General Ledger migration scenario 7.
I opened an incident to SAP raising this questions. The answer that I
received said that SAP itself can't give an comprehensive answer. Issues
would arise after the assignment of additional ledgers: while reversing or
clearing documents that have been posted before the assignment. In addition
currency calculation could be an issue. We're free to test this and maybe
we can live with that.
However, I tested this: assigned an additional ledger, reversed and cleared
documents w/o any issue.
Additionally I've seen that in the config where you add additional ledgers
a pop-up appears asking whether the company is productive and telling that
you then need to use General Ledger migration Services.
Just wanted to share with you. Please let me know what you think. SInce you
wrote that you are doing the integration test 3 and had no isses so far you
certainly tested a lot, correct?
Thanks,
Joachim
0 likes
Helpful Answer
Ajay Maheshwari SAP Trainer replied
January 19, 2016 at 10:28 AM
Hi Joachim
I know this approach works, but cant recommend that..
With our limited knowledge about the system design, we can foresee upto
some extent. If something goes adverse, SAP wont support you. So, that's
the only flip side
If you wanna go ahead, I would suggest also do YE Close activities, GL
Balance C/F on Ledgers, etc. test everything that you would do in the live
system
I align with Sanil that it is better to activate New AA in Simple Finance..
Because AA in SFIN has further changed over and above EhP7... So, no point
in doing it twice
Regards
Ajay M
0 likes
Joachim Nerreter replied
January 19, 2016 at 12:21 PM
Hi Ajay,
So you are saying adding the subsequent ledger w/o G/L migration works. The
down side is that if an issue arises SAP wouldn't be forthcoming in the
support. That makes sense seeing the hint in the note and in the config. So
either test it soundly and take the risk or use the SAP G/L migration
scenario 7. The latter would be the safest I take it. I haven't done a G/L
migration service project yet. Do you have any idea what the cost might be
(100$, 1000$ or 10000$, or more). The impact of adding a subsequent ledger
isn't that high, it's not a complete new G/L implementation.
Any experience with G/L migration service?
Ok, I understand Sanil's and your point regarding the timing with S/4HANA
being on the horizon.
Thanks,
Joachim
0 likes
Helpful Answer
Ajay Maheshwari SAP Trainer replied
January 19, 2016 at 12:26 PM
Hi Joachim
No idea about the cost involved.. But this scenario should be an easier one
Apart from SAP, there is one more company in the US which offers this.. It
is QS&S... You can compare the quotation from both
Fyi.. I read one SAP note long back, which offers a correction program..
That program basically populates a ledger with the historical data, by
deleting the present transaction data
Though SAP says it must be used only for correction purpose, am not sure if
it can work for you.. Again it is a Q of taking risk
Regards
Ajay M
0 likes
Joachim Nerreter replied
January 19, 2016 at 12:45 PM
Thank you Ajay for your help. You don't happen to know the number of this
note?
0 likes
Helpful Answer
Ajay Maheshwari SAP Trainer replied
January 19, 2016 at 12:58 PM
Hi Joachim
Am a lazy guy, but you made me search finally
Program: FAGL_DELETE_RELOAD_LEDGERS
However, note 1340411 - EURO: FAGL_DELETE_RELOAD_LEDGERS, says this must be
used only for Currency Conversion cases and not as a utility to correct
corrupt docs
Rgds
Ajay M
0 likes
Joachim Nerreter replied
January 21, 2016 at 09:26 AM
Thanks, Ajay.
Regarding my original question I got a reply from
[email protected].
They told me at length that SAP strongly recommends to use the G/L
migration service to add the and populate consistently the additional
ledger. Also in order not to jeopardize the support and warranty. Costs are
from 10,000 to 30,000 Euro based on the migration scenario used. Scenario 7
would be in the lower region. The migration date would be the start of our
next fiscal year (July 1).
Given that we already plan a profit center reog with SAP LT (you replied to
my other question in SCN) for the same date, July 1, I wonder if there are
any interdependecies respectively if these two projects (reorg + additional
ledger) can be performed at the same time...
Any thoughts?
Thanks,
Joachim
0 likes
Ajay Maheshwari SAP Trainer replied
January 21, 2016 at 09:43 AM
Hi Joachim
I think you can club both. They are not mutually exclusive
but since you have access to SAP New GL Migration team, better to ask them
Br, Ajay M
0 likes
Aleksey Tkachenko replied
January 28, 2016 at 11:35 AM
Hi,
I wouldn't recommend to perform 2 these project in parallel.
0 likes
S4HANA Finance: New Asset Accounting – Simplified.
February 5, 2017 " 383 Views "
more by this author
S/4 HANA- New Asset Accounting – Considering Key Aspects
This blog is focused on New Asset accounting for ledger approach in
multiple currency environment. New Asset Accounting is the only Asset
Accounting solution available in S/4 HANA, classic Asset Accounting is not
available any more.
I have covered following key topics within S/4 HANA New Asset Accounting
keeping in view various questions coming in from different
customers/partners on this key innovation step taken within Finance as part
of S/4 HANA simplification and we need to be very clear on this new
requirement before starting the new or conversion S/4 HANA project.
1. Pre-requisite Business Functions
2. Data Structure Changes in Asset Accounting
3. New FI-AA-Integration with the Universal Journal Entry
4. Asset Accounting Parallel Valuation
5. Key Configuration Consideration in Ledger Approach
6. Why will use a technical clearing GL account
7. New Asset Accounting Posting Logic
8. FI-AA Legacy Data Transfer
9. Adjusting chart of Depreciation Prior to Conversion
10. Installing SFIN in Conversion/Migration Scenario
1. Pre-requisite Business Functions
Activate the following Business Functions
ENTERPRISE_EXTENSIONS – EA-FIN
ENTERPRISE_BUSINESS_FUNCTIONS – FIN_AA_PARALLEL_VAL
2. Data Structure Changes in Asset Accounting
Actual data of ANEK, ANEP, ANEA, ANLP, ANLC is now stored in table
ACDOCA. ANEK data is stored in BKPF.
Compatibility views FAAV_ (for example, FAAV_ANEK) are
provided in order to reproduce the old structures.
Statistical data (for example, for tax purposes) previously stored in
ANEP, ANEA, ANLP, ANLC is now stored in table FAAT_DOC_IT
Plan data previously stored in ANLP and ANLC is now stored in
FAAT_PLAN_VALUES
Classic Asset Accounting is mostly transformed automatically into the
New Asset Accounting by executing mandatory migration steps related to
Asset Accounting.
Posting to different periods possible (restriction: beginning/end of
FY needs to be equal) refer OSS note 1951069/ 2220152
Following table shows some redundant/new Asset accounting programme.
3. New FI-AA-Integration with the Universal Journal Entry
Asset Accounting is based on the universal journal entry. This means there
is no longer any redundant data store, General Ledger Accounting and Asset
Accounting are reconciled Key changes are listed below: –
There is no separate balance carry forward needed in asset accounting,
the general balance carry forward transaction of FI (FAGLGVTR)
transfers asset accounting balances by default.
The program Fixed Assets-Fiscal Year Change (RAJAWE00) transaction
AJRW is no longer has to be performed at fiscal year change
Planned values are available in real time. Changes to master data and
transaction data are constantly included
The most current planned depreciation values will be calculated
automatically for the new year after performing the balance carry
forward. The depreciation run posts the pre-calculated planned values.
The Selection screen is simplified as the "reasons for posting run"
(planned depreciation run, repeat, restart, unplanned posting run) are
no longer relevant.
Errors with individual assets do not necessarily need to be corrected
before period-end closing; period-end closing can still be performed.
You have to make sure that all assets are corrected by the end of the
year only so that depreciation can be posted completely.
All APC changes in Asset Accounting are posted to the general ledger
in real time. Periodical APC postings are therefore no longer
supported.
Transaction types with restriction to depreciation areas are removed
in new Asset Accounting and you can set the obsolete indicator in the
definition of the transaction that were restricted to depreciation
areas in the classic asset accounting.
4. Asset Accounting Parallel Valuation
Very Important part of new Asset accounting is parallel valuation in
multicurrency environment.
The leading valuation can be recorded in any depreciation area. It is
no longer necessary to use depreciation area 01 for this. The system
now posts both the actual values of the leading valuation and the
values of parallel valuation in real time. This means the posting of
delta values has been replaced; as a result, the delta depreciation
areas are no longer required.
New Asset Accounting makes it possible to post in real time in all
valuations (that is, for all accounting principles). You can track the
postings of all valuations, without having to take into account the
postings of the leading valuation, as was partly the case in classic
Asset Accounting.
5. Key Configuration Consideration in Ledger Approach
We need to answer some basic question before configuring new asset
accounting in S4 Hana environment as this would determine the required
minimum depreciation areas to align the FI with Asset Accounting. i.e.
Required Valuation Approach
How Many Ledgers (Leading + Non Leading) exists or to be configured.
What all currencies are used in each of the ledgers.
For Example:-
In this Example we have one com code which has 2 ledgers 0L & N1 & these 2
ledgers having 3 currencies i.e 10,30 & 40 as shown below.
Above mapping is to ensure and establish link between depreciation
area/accounting principal and Currency
Explaining with ledger approach example. From release 1503 i.e initial
version of SAP Finance add on version in S4 Hana a new table ACDOCA is
introduced which stores the asset values also per ledger /per currency on
real time basis & no need to have any reconciliation between Finance and
Asset accounting and to do so it is must to follow the guidelines while
setting up depreciation areas & respective currencies, which I have tried
to explain with an example as given below: –
Ledger & currency setting has to be done in New GL in the following SPRO
node.
Financial Accounting (New)–> Financial Accounting Global Settings (New)–>
Ledgers–> Ledger –> Define Settings for Ledgers and Currency Types
Define Depreciation Areas
Depreciation Areas defined as per new FI-GL & FI-AA requirement so here at
least 6 depreciation areas are must so that ledger wise each currency can
be represented in separate depreciation area & these depreciation area is
assigned to Accounting principal.
Specify Depreciation Area Type
Specify Transfer of APC Values
In this activity, you define transfer rules for the posting values of
depreciation areas. These transfer rules let you ensure that certain
depreciation areas have identical asset values
Specify Transfer of Depreciation Terms
In this activity, you specify how the depreciation terms for a depreciation
area are adopted from another depreciation area. You can specify if the
adoption of values is optional or mandatory. If you specify an optional
transfer, then you can change the proposed depreciation terms in the
dependent areas in the asset master record. In the case of a mandatory
transfer, you cannot maintain any depreciation terms in the asset master
record. In this way, you can ensure that depreciation is uniform in certain
depreciation areas.
Define Depreciation Areas for Foreign Currencies
For every additional currency type defined on the company code a
corresponding depreciation area needs to be set up.
As explained in previous step here we need to define the currency for each
dep area so for example if a company code has 2 ledgers i.e 0L and N1 with
3 currencies then at least 6 depreciation areas should be setup &
currencies should be assigned for each depreciation area ( Here leading
valuation depreciation area will derive currency from com code currency)
Specify the Use of Parallel Currencies
Here we need to specify the Currency type for each for the Depreciation
area which will align FI Currency type with Asset Depreciation areas &
accordingly will be updated in ACDOCA.
With this setting its ensured that all currency types are aligned with
respective depreciation area and asset values are getting updated parallel
to Financial accounting per currency.
6. Why will use a technical clearing GL account
Architecture has been changed in the way that we now post in asset
accounting for each valuation a separate document. So we perform on the
asset part accounting principle specific postings. Technically we perform
ledger-groups specific postings.
On the operational part (accounts receivable, accounts payable) the value
is always the same for each accounting principle. So for the operational
part we have to perform postings which are valid for all accounting
principles. Technically we perform postings without specifying the ledger-
group.
To split the business process in an operational and a valuating document
there was a need to establish the "technical clearing account" for
integrated asset acquisition.
For the operational part (vendor invoice/GRIR), the system posts a
document valid for all accounting principles against the technical
clearing account for integrated asset acquisitions. From a technical
perspective, the system generates a ledger-group-independent document.
For each valuating part (asset posting with capitalization of the
asset), the system generates a separate document that is valid only
for the given accounting principle. This document is also posted
against the technical clearing account for integrated asset
acquisitions. From a technical perspective, the system generates
ledger-group-specific documents.
Define account "Technical clearing account" for integrated asset
acquisition.
Specify Alternative Document Type for Accounting Principle-Specific
Documents
Here Operational document type will have original document used during
entry & while generating accounting principal wise separate document it
would be document type AA.
7. New Asset Accounting Posting Logic
The Operational Entry Document posts to a technical clearing account. The
Operational Entry Document does not update the asset values; the asset data
is only used to perform checks.
Accounting principle specific documents (1 to n). The accounting principle
specific documents post to: – the technical clearing account in each view
(balancing to zero) and the asset reconciliation account (and update the
asset line items).
Asset Acquisitions Operational Document
Asset Acquisitions Accounting Principal (IFRS) specific Document
Asset Acquisitions Accounting Principal (LOCA) specific Document
Universal Table updated with respective ledger (0L & N1) and currencies.
Correction Asset Acquisition value in specific GAAP
Use Transaction code AB01L
8. FI-AA Legacy Data Transfer
You create asset master records for the legacy data transfer using
transaction AS91.
You post the transfer values using transaction ABLDT; in doing so, a
universal journal entry is posted for the fixed asset.
If wrong transfer values were posted, you must reverse the journal
entry and then recreate it.
You can use transaction AS92 to change master data; transaction AS93
to display master data; and transaction AS94 to create sub numbers for
the Asset master record.
Time of Legacy Asset Transfer
The transfer date is the cut-off date for the transfer of legacy data. The
transfer will only include data up to this point in time. There are two
possible scenarios.
The transfer date can be the end of the last closed fiscal year.
The transfer date can be in the fiscal year. This is called "transfer
during the fiscal year.
Scenario 1: Transfer Date is the End of the Last Closed Fiscal Year:
In this case, you do not need to include any posted depreciation or
transactions in the transfer of legacy data. You only need to transfer
master data and the cumulative values as of the end of the last closed
fiscal year.
Scenario 2: Transfer During the Fiscal Year
Along with the general master data, and the cumulative values from the
start of the fiscal year (time period A), you must also transfer the
following values.
Depreciation during the transfer year and Transactions during the
transfer year
Include the depreciation posted in the legacy system since the end of
the last closed fiscal year up to the date of transfer (time period
B).
Any asset transactions in your legacy system that have a value date
after the transfer date, but before the date of the physical transfer
of data (time period C), need to be posted separately in the Asset
Accounting component in any case.
Example of scenario 2 Legacy Data Transfer During the Fiscal year:-
Case: Legacy asset is acquired in previous year 01.01.2015 and taken over
into simple finance system in mid-year of current year (30.04.2017)
Specify Transfer Date/Last Closed Fiscal Year (V_T093C_08)
Specify Last Period Posted in Prv. System (Transf. During FY) (OAYC)
Step 1:- AS91 to create Legacy asset master data
Step 2:- ABLDT to update Legacy Original Acquisition Value/ Accumulated
Depreciation and current year Depreciation Posted.
Step 3: Verify Legacy Asset Planned Value
Step 4: Verify Legacy posted Value
9. Adjusting Chart of Depreciation prior to Conversion
For the leading valuation of the ledger approach and accounts approach
and for parallel valuations of the ledger approach its must that the
parallel currencies in the leading ledger in General Ledger Accounting
and in the depreciation areas in Asset Accounting must be the same as
explained one example above with ledger approach scenario.
Using the migration program available under Migration Tools, you can
automatically adjust the parameters in your charts of depreciation. If
error messages appear stating that automatic adjustment is not
possible, you have to adjust the charts of depreciation manually.
If until now you have been using parallel currencies in General Ledger
Accounting, but you have not implemented the corresponding parallel
currency areas in Asset Accounting for all depreciation areas, you
must implement these areas in a separate project before you install
SAP Simple Finance. In such a project, you must first perform the
preparatory steps for creating depreciation areas in Customizing; you
must then determine the new values for each fixed asset for a newly
created depreciation area.
For company codes that are assigned to the same chart of depreciation,
these company codes are not allowed to differ in number and type from
the parallel currencies used in General Ledger Accounting.
Even if you migrate to SAP Accounting powered by SAP HANA from a
system (e.g. EHP7) having FI-AA (new) already active, you still must
migrate every active chart of depreciation.
10. Installing SFIN in Conversion/Migration Scenario
From the viewpoint of Asset Accounting, it is not necessary that you
install SAP Simple Finance at the end of the year or period. However, it is
required that you perform a complete period-end closing directly before you
install SAP Simple Finance and some of the important point you must
consider w.r.t New Asset Accounting. (for detail you may refer conversion
guide)
To check if the prerequisites outlined are met, you have to check
using the program for preliminary checks RASFIN_MIGR_PRECHECK. You
import the current version of this program using SAP Note 1939592,
before you install SAP Simple Finance in your system. Perform this
check in all of your systems – in the Customizing system as well as in
the downstream systems (test system and production system).
If until now you updated transactions in parallel valuations with
different fiscal year variants and want to continue using this update,
then you must implement a new representative ledger using the SAP
General Ledger Migration Service before you install SAP Simple
Finance. For more information about alternative fiscal year variants
with parallel valuation, see SAP Note 2220152 Information published on
SAP site.
You must have performed periodic APC posting (RAPERB2000) completely;
the timestamp must be current.
Execute the periodic depreciation posting run (RAPOST2000).
Run the program for recalculating depreciation (transaction AFAR).
Reconcile your general ledger with the Asset Accounting subsidiary
ledger, both for your leading valuation and for parallel valuations.
The migration must take place at a time when only one fiscal year is
open in Asset Accounting.
You can check which fiscal year is closed in your company code in
Customizing for Asset Accounting (New) under Preparations for Going
Live à Tools à Reset Year-End Closing.
Ensure that no further postings are made in your system after running
period end transactions before installing S4 Hana Simple Finance hence
lock the users.
Perform a backup before installing SFIN
As soon as you have installed SAP Simple Finance, you can no longer
post in Asset Accounting. To ensure that migration is successful, it
is essential that you make sure that the prerequisites are met and a
complete period-end closing was performed before you install SAP
Simple Finance. Posting for new Asset Accounting is only possible
again after you have completed the migration fully and successfully.
After completing the migration, make sure that no fiscal year that is
before the migration is reopened in Asset Accounting.
Thanks a lot
Ajeet Agarwal
venkatakasi Reddy Polu Aug 24, 2016 9:36 AM
Hello Ravi,
i want to know one thing in New asset accounting, i.e, why SAP removed
Smooting check box?
Regards
Kasi Reddy
Like (0)
o
Ravi Chirivella Aug 24, 2016 9:58 AM (in response to venkatakasi
Reddy Polu)
Hi kasi,
As per the current system settings once you select the check box
Smoothing, In one financial year system will distributes the
delta depreciation value to other open periods equally, other
wise, the whole delta value will post in the immediate period,
but in New asset accounting this change is incorporated in the
coding level so that, the setting is obsolete.
Regards,
Ravi
Like (1)
venkatakasi Reddy Polu Aug 25, 2016 6:19 PM
Hello Ravi,
In Simple Finance Can we use different Fiscal Year Variants for
Different Accounting Principles and Ledgers?
Regards
Kasi Reddy
Like (0)
o
Erwin Leitner Aug 25, 2016 7:57 PM (in response to venkatakasi
Reddy Polu)
Hello,
find some hint in SAP help
I have marked relevant text, see screenshot.
br erwin
Link SAP Help: FI-AA
New Asset Accounting: Ledger Approach and Accounts Approach -
SAP Simple Finance Add-On for SAP Business Suite powered b…
Like (1)
venkatakasi Reddy Polu Aug 26, 2016 12:00 PM (in response
to Erwin Leitner)
thank u Erwin for ur information.
Like (0)
o
venkatakasi Reddy Polu Aug 26, 2016 12:01 PM (in response to
venkatakasi Reddy Polu)
thank u Ravi for ur Reply.
ACCOUNTS APPROACH VS LEDGER APPROACH:
Difference between Ledger and Accounts Approach in SFIN
I would like to understand the difference between Ledger Approach and
Accounts Approach in SFIN. where i can see which approach they are using in
our current system .is there any configuration steps are involved.
if possible could you brief us with certain examples or Business scenarios
where we can use different approaches.
Aleksey Tkachenko Aug 8, 2016 4:29 PM (in response to Lal Maheswararao
Dara)
Hi, first of all you can check in IMG Financial Accounting (New)-Financial
Accounting Global Settings (New)-Ledger-Define Settings for Journal Entry
Ledger. you can choose/assign which approach do you use wise combination
Ledger/Company code... But this config more 'informal' then required.
How posting flow to FI you need to check automatic postings config, e.g. in
FI-AA AO90, config for FAGL_FCV and so on.
Also you can check to which ledgers accounting principles are assigned
Financial Accounting (New)-Financial Accounting Global Settings (New)-
Ledgers-Parallel Accounting
o Al
How to Set Up Parallel Asset Accounting in SAP S/4HANA Finance with
Differing Fiscal Year Variants
Posted on10/07/2017
by Ajay Maheshwari,
SAP FI/CO and SAP S/4HANA Solution Architect
Kavita Agarwal,
SAP FI/CO and SAP S/4HANA Solution Architect
February 02, 2017
Learn how to set up the new Asset Accounting functionality (FI-AA) in SAP
S/4HANA Finance in a parallel reporting scenario with differing fiscal year
variants.
Learning Objectives
Reading this article, you will learn:
How the real-time integration between General Ledger Accounting (FI-GL) and
Asset Accounting (FI-AA) in SAP S/4HANA forces a different kind of setup
for the ledgers
Key ConceptThe unified data model and real-time integration between General
Ledger Accounting (FI-GL) and Asset Accounting (FI-AA) force the fiscal
year variants from the leading and non-leading ledgers onto the
depreciation areas.
SAP S/4HANA Finance offers an integrated and unified data model in Finance
between the SAP General Ledger Accounting (FI-GL) and Asset Accounting (FI-
AA). It offers many benefits to users, especially the real-time reconciled
ledgers (the main ledger and asset sub-ledger).
However, the new features of SAP S/4HANA Finance also significantly change
how the new FI-AA module must be set up in a parallel reporting scenario
(for example, local reporting and group reporting, where the local company
and parent companies follow different reporting periods).
Consider a scenario that represents a practical real-life scenario for many
organizations. ABC Inc. USA follows International Financial Reporting
Standards (IFRS) reporting standards and Jan-Dec as the fiscal reporting
period. It has a subsidiary company in India (represented by company code
9999 in our example) that has to follow Apr-Mar as the fiscal reporting
period to comply with local laws. As such, company code 9999 follows
parallel accounting in SAP S/4HANA Finance, using a ledger approach.
Setting Up the Scenario in Classic FI-AA as of ECC 6.0
To set up the above scenario in classic FI-AA as of SAP ERP Central
Component (ECC) 6.0, you would do the following customizing in your SAP
system, as shown in Table 1.
"Company code "Ledger "Fiscal "Depreciation area "
" " "year " "
"9999 "0L "V3 "01 "
" " "(Apr-Mar) " "
"9999 "2L "K4 "02 "
" " "(Jan-Dec) " "
Table 1: The customizing setup in classic FI-AA as of ECC 6.0
In our scenario, you would assign the leading ledger (0L) and a non-leading
ledger (2L), with fiscal year variants as V3 and K4, respectively, to the
company code 9999. (The steps for this configuration in ECC are not part of
the scope of this article). Using the ledger 0L, company code 9999 would be
reporting as per local laws (i.e., Apr-Mar) and with the ledger 2L, it
would report as per the group reporting norms (i.e., Jan-Dec).
The leading ledger 0L is assigned to the Depreciation Area 01 and the non-
leading ledger 2L is assigned to the Depreciation Area 02. However, you
don't have to assign a fiscal year variant specifically to the depreciation
areas, as the asset accounting derives the fiscal year variant from the
leading ledger. It must be noted that the fiscal year start and end date
must be same for all depreciation areas in asset accounting.
Asset Accounting (New) in S4 HANA Finance
New Asset accounting is available in ECC6.0 EHP7 (optional) and S4 HANA
Finance (Mandatory)
In New asset accounting, you can handle parallel accounting using
depreciation areas.
For representing parallel accounting in New asset accounting, you have two
scenario's as mentioned below.
Using Parallel ledgers: The Ledger approach
Using Additional accounts: The Accounts approach
Ledger approach:
11. Different accounting principles or valuation are mapped in separate
ledgers, as in new General ledger accounting. In general, the same
accounts are used in the ledgers.
12. The depreciation areas have equal status. Separate documents are
posted for each accounting principle or valuation.
13. For each accounting principle or valuation, the system posts the
correct values in real time. The values that are posted are full
values and not delta values.
14. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. For this
leading depreciation area, choose the posting optionArea Posts in
Realtime. This applies both for the leading valuation and for all
parallel valuations. You can choose which of these depreciation areas,
which post to the general ledger, posts to the leading ledger.
15. One or more depreciation areas represent a valuation. You must assign
an accounting principle uniquely to all depreciation of a valuation.
For each valuation, the accounting principle has to be assigned to a
separate ledger group. The ledgers of these ledger groups
arenot allowed to overlap.
16. Differences in values in each accounting principle: You can enter
documents that are valid only for a certain accounting principle or
valuation. To do so, when entering the business transaction, you can
restrict the posting to the accounting principle or to one or more
depreciation areas.
17. You can assign different fiscal year variants to each type of
valuation. (There is a restriction in this case: The start dates and
end dates of the fiscal year variants must be the same.) If the dates
of FY are different then AA MCT need to be enhanced accordingly.
18. Within an asset class, it is possible to make a simple assignment of
different G/L accounts (such as, reconciliation accounts for APC and
value adjustments) for each valuation.
19. If you have defined parallel currencies in new General Ledger
Accounting, and you want to use these currencies in new Asset
Accounting, you are required to create – for the leading valuation and
the parallel valuations – the necessary depreciation areas for each
currency.
20. Managing quantities: In the standard system, depreciation area 01 is
intended for the quantity update. If needed, you can specify a
different depreciation area for the quantity update. However, this has
to be a depreciation area that posts to the general ledger. The
quantity – if it is to be managed on the asset – is updated in the
asset master record only when a posting is made to this different
depreciation area.
Different Fiscal Year Variants:
You can enter a separate fiscal year variant for each depreciation area in
Asset Accounting. The start and end dates of this fiscal year variant have
to be the same as the start and end dates of the fiscal year variant of the
company code. As part of the ledger approach, the system also allows a
posting in a representative ledger, to which any fiscal year variant is
assigned. The system then derives the period from the posting date. The
depreciation, however, is determined as before using the fiscal year
variant of the depreciation area of the posting.
Accounts Approach:
5. You represent different valuations on different accounts within the
same general ledger. This means that you have to create the same set
of accounts again for each parallel valuation.
6. Separate documents are posted for each accounting principle or
valuation.
7. For each accounting principle or valuation, the system posts the
correct values in real time. The values that are posted are always
full values andnot delta values.
8. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. The
following applies for these posting depreciation areas:
1. For the leading valuation, choose the posting optionArea Posts
in Realtime.
2. For the parallel valuations, choose the posting optionArea Posts
APC Immediately, Depreciation Periodically.
You can choose which of these depreciation areas that post to the general
ledger represent the leading valuation.
1. There can also be investment support on the liabilities side for the
valuations. These depreciation areas also receive the posting
optionArea Posts in Realtimefor the leading valuation or Area Posts
APC Immediately, DepreciationPeriodically for parallel valuations.
2. One or more depreciation areas represent a valuation. You must assign
an accounting principle uniquely to all depreciation areas of a
valuation. For each valuation, the accounting principle has to be
assigned to a separate ledger group. These ledger groups
mustalways contain the leading ledger as the representative ledger.
3. If you have defined parallel currencies in new General Ledger
Accounting, and you want to use these currencies in new Asset
Accounting, you are required to create a depreciation area for each
currency for the leading valuation. However, this is not mandatory for
the parallel valuations.
4. Differences in values in each accounting principle: You can enter
documents that are valid only for a certain accounting principle or
valuation. To do so, when entering the business transaction, you can
restrict the posting to the accounting principle or to one or more
depreciation areas.
In New asset accounting, you can handle parallel accounting using
depreciation areas.
For representing parallel accounting in New asset accounting, you have two
scenario's as mentioned below.
Using Parallel ledgers: The Ledger approach
Using Additional accounts: The Accounts approach
Ledger approach:
1. Different accounting principles or valuation are mapped in separate
ledgers, as in new General ledger accounting. In general, the same accounts
are used in the ledgers.
2. The depreciation areas have equal status. Separate documents are posted
for each accounting principle or valuation.
3. For each accounting principle or valuation, the system posts the correct
values in real time. The values that are posted are full values and not
delta values.
4. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. For this leading
depreciation area, choose the posting option Area Posts in Realtime. This
applies both for the leading valuation and for all parallel valuations. You
can choose which of these depreciation areas, which post to the general
ledger, posts to the leading ledger.
5. One or more depreciation areas represent a valuation. You must assign an
accounting principle uniquely to all depreciation of a valuation. For each
valuation, the accounting principle has to be assigned to a separate ledger
group. The ledgers of these ledger groups are not allowed to overlap.
6. Differences in values in each accounting principle: You can enter
documents that are valid only for a certain accounting principle or
valuation. To do so, when entering the business transaction, you can
restrict the posting to the accounting principle or to one or more
depreciation areas.
7. You can assign different fiscal year variants to each type of valuation.
(There is a restriction in this case: The start dates and end dates of the
fiscal year variants must be the same.)
8. Within an asset class, it is possible to make a simple assignment of
different G/L accounts (such as, reconciliation accounts for APC and value
adjustments) for each valuation.
9. If you have defined parallel currencies in new General Ledger
Accounting, and you want to use these currencies in new Asset Accounting,
you are required to create – for the leading valuation and the parallel
valuations – the necessary depreciation areas for each currency.
10. Managing quantities: In the standard system, depreciation area 01 is
intended for the quantity update. If needed, you can specify a different
depreciation area for the quantity update. However, this has to be a
depreciation area that posts to the general ledger. The quantity – if it is
to be managed on the asset – is updated in the asset master record only
when a posting is made to this different depreciation area.
Different Fiscal Year Variants:
You can enter a separate fiscal year variant for each depreciation area in
Asset Accounting. The start and end dates of this fiscal year variant have
to be the same as the start and end dates of the fiscal year variant of the
company code. As part of the ledger approach, the system also allows a
posting in a representative ledger, to which any fiscal year variant is
assigned. The system then derives the period from the posting date. The
depreciation, however, is determined as before using the fiscal year
variant of the depreciation area of the posting.
Accounts Approach:
1. You represent different valuations on different accounts within the same
general ledger. This means that you have to create the same set of accounts
again for each parallel valuation.
2. Separate documents are posted for each accounting principle or
valuation.
3. For each accounting principle or valuation, the system posts the correct
values in real time. The values that are posted are always full values
and not delta values.
4. For each valuation, there is always just one depreciation area that
posts to the general ledger in real time and manages APC. The following
applies for these posting depreciation areas:
1. For the leading valuation, choose the posting option Area Posts in
Realtime.
2. For the parallel valuations, choose the posting option Area Posts APC
Immediately, Depreciation Periodically.
You can choose which of these depreciation areas that post to the general
ledger represent the leading valuation.
1. There can also be investment support on the liabilities side for the
valuations. These depreciation areas also receive the posting option Area
Posts in Realtime for the leading valuation or Area Posts APC Immediately,
Depreciation Periodicallyfor parallel valuations.
2. One or more depreciation areas represent a valuation. You must assign an
accounting principle uniquely to all depreciation areas of a valuation. For
each valuation, the accounting principle has to be assigned to a separate
ledger group. These ledger groups must always contain the leading ledger as
the representative ledger.
3. If you have defined parallel currencies in new General Ledger
Accounting, and you want to use these currencies in new Asset Accounting,
you are required to create a depreciation area for each currency for the
leading valuation. However, this is not mandatory for the parallel
valuations.
4. Differences in values in each accounting principle: You can enter
documents that are valid only for a certain accounting principle or
valuation. To do so, when entering the business transaction, you can
restrict the posting to the accounting principle or to one or more
depreciation areas.
Source:SAP Library
4. New Asset Accounting - New Asset Accounting is the only asset accounting
solution in SAP Simple Finance. Classic Asset Accounting is not longer
possible. Configuration and activation is at the client level. Both
valuation approaches are possible - Ledger Approach and Account Approach.
Key Changes
a). Ledger Approach - For an integrated asset acquisition posting under
Ledger Approach, the system divides the business transaction into an
Operational part and a Valuating part. Operational part refers to Invoicing
part where the system makes a posting to all ledger groups against the
technical clearing accounting. For the Valuating part, the system generates
ledger group specific documents.
"Ledger "Operational Part (Vendor "Valuating Part (Asset Posting with"
"Group "Invoice Posting) "Capitalization) "
"All "Technical Clearing "---No Posting---- "
"Ledgers "Account Debit " "
" "Vendor " "
" " " "
" "Credit " "
"IFRS "----No Posting---- "Asset "
"Ledger " " Debit "
" " "Technical Clearing Account "
" " "Credit "
"GAAP "---No Posting---- "Asset "
"Ledger " " Debit "
" " "Technical Clearing Account "
" " "Credit "
b). Account Approach - Under Account Approach, the account is posted to
Contra Account. Acquisition Value Posting is assigned in the account
determination instead of Technical Clearing Account.
c). Transaction Types - To post transactions such as corrections, you no
longer need a transaction type limited to specific depreciation areas. You
can choose the accounting principle or depreciation areas directly in the
transaction views.
d). Balance Carry Forward - For year end closing there is not separate
balance carry forward needed in Asset Accounting, the general balance carry
forward transaction of FI will transfer asset accounting balances by
default.
e). New Depreciation Run - Determination of depreciation and posting
happens asynchronously in two separate steps. Planned depreciation is
determined and updated with each asset master record change and each
posting to the asset. The depreciation run posts the pre-calculated planned
values.
"FAQs on New Asset Accounting "
"i). XYZ Inc. is planning to implement Simple Finance. Can they continue to"
"be on Classic Asset Accounting? "
" "
"Solution - New Asset Accounting is the only asset accounting solution in "
"SAP Accounting on SAP HANA. Classic Asset Accounting is no longer "
"available. "
" "
"ii). Users of ABC Inc. recently implemented Simple Finance. They are "
"looking for your advice on how to post $200 transport cost in local GAAP "
"Ledger only on Asset Invoice. "
" "
"Solution - To post a transaction such as corrections or adjustments for "
"local accounting rules requirements, you no longer need a transaction type"
"limited to specific depreciation areas. You can direct the user as below: "
"- In the command field, run transaction ABZOL "
"- Choose the accounting principle as LG (Local GAAP) and Depreciation Area"
"directly in the transaction view "
"- Enter the other asset related data and click on Post "
" "
"iii). For an integrated asset acquisition posting, system divides the "
"business transaction into an operational part and a valuating part. Which "
"part posts to all ledger groups? "
" "
"Solution - Operational Part which posts technical clearing accounting "
"against Vendor Invoice will post to all ledger groups. "
" "
"iv). What are the benefits of integration of asset accounting with "
"Universal Journal? "
" "
"Solution - Universal Journal integration with Asset Accounting will "
"provide below benefits: "
"- No redundancy in data storage "
"- No reconciliation step in financial close required as FI and AA will get"
"reconciled by design "
" "
"v). Which classic asset accounting reports will become obsolete after New "
"Asset Accounting Implementation? "
" "
"Solution - Periodic APC Postings (Program - RAPERBxxxx), Reconciliation "
"Postings (Program - RAABSTxxxx), Fiscal Year Change (Program - RAJAWE00), "
"Post Depreciation (Program RAPOSTxxxx) "