PARALLEL LEDGERS IN ASSET ACCOUNTING (第1页)

hsen ABROUG

April 8, 2020 5 minute read

PARALLEL LEDGERS VALUATION IN S/4 HANA NEW ASSETS ACOUNTING

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Using the parallel ledger, companies can set parallel valuation in different accounting principles

Typically, a local company that belongs to a group needs to follow both local and group accounting principles

In Assets accounting, we can set Parallel ledger accounting using depreciations areas

We need to define depreciation area per involved accounting principles,

In our scenario company FR01 a local branch of an international group, company FR01 needs to report financial statements in group accounting principles IFRS and in local GAAP accounting principles.

We defined the Leading ledger ‘0L’ for IFRS and non leading ledger ‘2L’ for LG accounting principles.

Let’s see the major customizing steps and a process flow to demonstrate the power of the ledger approach in parallel valuation in assets accounting.

1. Define settings for ledgers

We assigned accounting principles to corresponding ledgers for the company ‘FR01’.

0L Ledger:

2L Ledger:

2. Define Depreciations areas

In our example we created the following 2 depreciation areas:

Depreciation area 1 for IFRS accounting principles (0L Ledger group)

Depreciation area 12 for LG accounting principles (2L Ledger group)

Both areas 1 and 12 posts in real time

Important note:

In New Assts accounting, the delta depreciation area is no longer needed, the system posts in real time to both ledgers.

3. Assign GL Accounts

In this step we need to assign GL accounts for both depreciations areas, 1 and 12

We used the same accounts for both areas as we are using separate ledgers for both areas

The following screen shots applies for area 1, area 12 have the same accounts assignments

4. Define technical clearing account for integrated assets aquisition:

Below the SAP definition of the integrated aquisition postings available in SAP HELP

You can find this definition also when clicking on the glasses in front of the main customizing neud

“For an integrated asset acquisition posting, the system divides the business transaction into an operational part and a valuating part:

For the operational part (vendor invoice), 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 for each accounting principle.”

5. Specify alternative document type for the valuation part of the posting

The derived document type is for the valuation posting created at the same moment of vendor invoice when posting Asset aquisition

6. Determine Depreciations Areas in Asset Class

Select Asset class 3000

–> Deactivate all depreaciations areas except 01 and 12 areas

–> Set the usefull life 2 years for depreciation area 01 and 4 years for depreciation area 12

7. Business Scenario for Parallel Ledger Valuation

The company FR01 needs to maintain accounting and reporting for Assets in both group and local accounting principles,

In this scénario will process the following flow and track accounting posting and reporting in both acct principles

Create an asset, Post acquisition, Run depreciation, post retirement

7.1 Create asset

Create asset for Fixture and fitting (class 3000) with straight line depreciation method for depreciation area 1 and depreciations area 12

In Class 3000 for Area 1, the useful life is 2 years

In Class 3000 for Area 12, the useful life is 4 year

Transaction: AS01

7.2 Asset Aquisition

Asset acquisition for 2400 Euros

Transaction: F-90

Operational part (vendor invoice)

Valuating part (asset posting with capitalization of the asset)

7.3 Asset Depreciation Run

Transaction: AFAB

Posting for the first 5 periods of 2020.

Asset explorer for IFRS (0L)

–> Posted depreciation value 500,00 Euos for ledger “0L” for 5 periods (100,00 Euros per period).

Depreciation FI document posted to Ledger 0L:

Asset explorer for Local GAAP (2L)

–> Posted depreciation value 250,00 Euros for ledger “2L” for 5 periods (50,00 Euros per period).

Depreciation FI document posted to Ledger 2L:

7.4 Asset Retirement

Asset retirement for a sale value of 2000 Euros

Transaction: ABAON

Posting to IFRS acct principles (Ledger 0L)

–> 100 Euros gain for 0L ledger

Posting to LG acct principles (Ledger 2L)

–> 150 Euros Loss for ledger 2L

–> In IFRS Depreciation area we have a gain of 100 Euros and in the LG depreciation area we have 150 Euros loss

Using the parallel ledgers 0L and 2L, we are able to run parallel valuation according to different accounting principles

Please feel free to comment

Best Regards

Ihsen ABROUG

Abdullah Galal

April 10, 2020 at 9:41 am

Awesome blog with a great level of details, will refer anyone asking about parallel ledgers with FA to here.

Thanks a lot for your efforts, I know how much effort that takes.

This blog will be here after 10 years and people will still learn from it , please keep posting

Like 3

Ihsen ABROUG

Blog Post Author

April 10, 2020 at 7:20 pm

Thank you Abdullah

Regards

Ihsen

Like 0

TALHA KHAN

April 13, 2020 at 6:51 pm

Very informative and detailed explanation.

Excellent Blog.

Like 0

Georgios Agagiotis

April 14, 2020 at 5:49 am

Great work. Many Thanks.

Like 1

Durga sai ram Naraharisetty

April 14, 2020 at 1:09 pm

Excellent and very much helpful

Like 1

VENKATESH BHANDARI

April 14, 2020 at 6:51 pm

Nicely articulated..one can understand better on parallel ledgers. Great effort. Thanks

Like 1

Kishore Kamarthapu

April 15, 2020 at 9:32 am

Good Information Ihsen ABROUG.

Like 1

Jagadeesh Gundachary

April 15, 2020 at 8:53 pm

Very Well explained, Great work.

Like 1

kotesh rao

May 14, 2020 at 12:36 pm

Very good blog and detailed explanation.

Thanks for sharing & I wish you keep posted nice blogs.

Like 1

Raja Sekhar Andey

July 16, 2020 at 6:51 am

Simple and clear explanation.

But It would be ideal to have local GAAP as leading ledger (L0) since all the reporting should be done at Local GAAP.

Like 1

Monika Patel

December 28, 2020 at 10:54 pm

Thanks for such a detailed blog. Requesting to please clarify one doubt : Which version of S/4HANA was ref. in the blog ? Accounting-Principle what is the difference between assigning it to each-Comp-Code, within-the-ledger ?

Reason for asking above question :

In S/4HANA On-premise 1809, we have two-config --> (a) Define-Accounting-Principle & (b) Assign Ledger-Group to Accounting-Principle

As per my experience, we need to set-up the relation between Accounting-Principle >> Ledger-Group so that while creating Dep-Area, when we assign Accounting-Principle, accordingly Ledger belonging to Ledger-Group will get picked-up.

Thanks in anticipation to get the required clarity on above question. Regards

Like 0

Asharaf Jamal

April 16, 2021 at 10:12 am

Excellent !

Like 0

Dambuluwana Maddumage Ajith Madduma

April 18, 2021 at 11:34 am

Very useful, Detail explanation.

Thanks

Like 0

Kushal Vaidya

July 29, 2021 at 8:36 pm

Very Good Explanation.

Hi Have one Question - I understand how technical Account works and post acquisition documents in each ledgers.

Question - How can we handle posting different valuation to separate accounting ledgers during capex order settlement?

Can we still use capitalization key in S/4 HANA to configure how much we want to capitalize in each ledger.

Kushal Vaidya

Like 0

Thomas Langheim

May 15, 2022 at 9:42 am

Simply excellent, Ihsen.

Very good information in a very central part of SAP-FI.

OSS 2856765 - telling that table BSEG is not filled anymore here - is also very interesting in this context.

ACDOCA-BSTAT = 'U' is an interesting one (i.e. "not in BSEG anymore") mentioned in note OSS2297729 - and can be seen in "document status" in the depreciation postings inside this blog.

Again, thanks a lot. Inspiring.

Thomas

Like 0

Ram Kumar Swami

April 16, 2014 14 minute read

PARALLEL LEDGERS IN ASSET ACCOUNTING

525670,367

We can use parallel ledgers in asset accounting for different valuations as per different accounting principles. In our scenario, company code AIPL (Hindustan Mills Ltd) follows two accounting principles that is US GAAP and Indian GAAP. In General Ledger accounting we have created ledgers for each GAAP i.e. leading ledger ‘0L’ for US GAAP and Non-leading ledger ‘X1’ for Indian GAAP. In asset accounting, we use master area i.e. area 01 for leading ledger valuation. For valuation of non-leading ledger, we create one separate real depreciation area and one derived depreciation area for each accounting principle so that the values of Asset Accounting and General Ledger Accounting can be reconciled. The derived depreciation area triggers adjustment postings to keep the general ledger and subsidiary ledgers in sync. We have already created ledger group for each ledger in General Ledger accounting, the same ledger group will be assigned in depreciation area of each accounting principle in asset accounting. The following depreciation areas will be created:

1. Define Depreciation Areas

Define depreciation area 1 (book depreciation area ) and 30 (depreciation area for Indian GAAP). For depreciation area 1, system posts value in real time whereas for depreciation area 30, system posts only depreciation value. Use following menu path or transaction code:

Using above menu path or T.code we will assign the ledger groups in the respective depreciation area i.e. ledger group ‘0L’ in area 1 and ledger ‘X1’ in area 30:

In the above step, we have specified ledger group ‘0L’ as target ledger group for master depreciation area 01 that means asset values of depreciation area 01 will be updated in leading ledger ‘0L’ in General Ledger Accounting. The ledger group which we assign to master area must contain leading ledger. In the same way we will specify ledger group ‘X1’ for depreciation area 30 which we use for parallel valuation for Indian GAAP. The ledger group of the area for parallel valuation is not allowed to contain the leading ledger. Asset values in area 30 will be posted to Non-Leading ledger X1, as shown in the below screen:

Posting control in depreciation area 30 should be set as “Area posts Depreciation Only”.

We do not have to set up a separate set of GL accounts for this new depreciation areas 30. Instead we use the same set of GL accounts of the master depreciation area 01. In this scenario, we do not have to create any new GL accounts in the chart of accounts or in the company code. We also do not have to create a new financial statement version for different parallel valuations and Ledgers. Depreciation area 30 uses the GL account set of depreciation area 01. Ledger group ‘X1’ is not allowed to contain the leading ledger when we specify X1 as target ledger group in depreciation area.

To enable this setting, we have to select 1 in the field “Different Depreciation Area” in depreciation area 30 as shown in the above picture.

2. Setup areas for parallel valuation

Using this wizard, system automatically creates a derived depreciation area that is used for updating the APC differences in the ledger group of parallel valuation. Posting control in the derived depreciation area is set as “Area posts only APC directly” while the real depreciation area for parallel valuation posts only depreciation.

Real depreciation area 30 for parallel valuation use the GL accounts of the master depreciation area 01 for posting values. If the accounts of the master depreciation area are entered as cost elements, then this also applies to parallel valuation, although there is no update to CO in this general ledger.

Follow the steps below:

Click on “Continue” button.

Enter the real depreciation area 30 for parallel valuation and target ledger group X1 and click on “Continue” button.

Since we have not created any derived or delta depreciation area in chart of depreciation ALTM for company code AIPL, here we will select option “Create New Depreciation Area” so that system automatically creates the delta depreciation area for parallel valuation. System shows the difference between local and parallel valuation in this area and posts these differences in the ledger group for parallel valuation i.e. X1.

Click on “Continue” button.

Click on “Continue” button and complete the setting.

Now see the depreciation area overview (Transaction code OADB)

Notice that ledger group X1 has assigned in both depreciation area 30, which is for parallel valuation and depreciation area 55 which is delta depreciation area for area 30 to post the difference between area 1 and 30.

3. Determine Depreciation Areas in the Asset Class

In this IMG activity, we determine the depreciation terms that are used in asset classes.

Select asset class 3000 ‘furniture and fittings’ and double click on “Depreciation areas” in dialog structure:

Deselect the check box ‘deactivate’ for depreciation area 30 so that all the depreciation areas will appear when we create an asset master under this asset class.

We have specified useful life 2 years for area 01 and 4 years for area 30.

4. Integration with the General Ledger

In this IMG activity, we specify the balance sheet accounts and the depreciation accounts for master depreciation area 01 and parallel depreciation area 30. For derived depreciation area 55, account assignment is not required.

Assign balance sheet GL accounts to depreciation area 1 as follows:

Similarly assign balance sheet GL accounts to depreciation area 30 and then assign depreciation GL accounts for depreciation area 1 and 30 as follows:

Depreciation area 1:

Depreciation area 30:

5. Specify Document Type for Periodic Posting of Asset Values

In this IMG activity, we specify a default document type for periodic posting of asset balance sheet values (values other than depreciation). This document type is used only by the periodic posting program, RAPERB2000. We have created a separate document type ‘SX’ for this purpose, the same will assign to company code AIPL in this step as follows:

We have completed the necessary configuration steps for parallel ledgers in asset accounting. Now we will test the same settings for the business scenario in the following steps:

6. Scenario for parallel ledgers

Create an asset master for ‘Furniture’ with straight-line depreciation method with the following parameter controls:

Depreciation calculation for asset value 2, 40,000/- for each depreciation area is as under:

Now, do the asset acquisition for above asset and then run depreciation for one period and finally retirement of the asset and see the effect in parallel ledgers.

7. Create asset master

Create an asset master for furniture.

Click on “Deprec.Area” tab page and give useful life and depreciatoin key are 1 and 30 as follows:

Now save the data, system has created asset master number 300011 for furniture.

8. Asset acquisition

Do asset purchase on date 01.03.2013 for amount 240,000 using following menu path or transaction code:

Asset purchase document has posted as shown in above screen shot.

9. Display asset value in asset explorer

Use the following menu path or transaction code to display the asset value for all depreciation areas for the asset posted in earlier step:

In the above screenshot, we can see the value in depreciation area 01 (Leading ledger valuation in local currency).

Now see the comparison value of depreciation area 30 as follows:

In the above picture, for depreciation area 30 (Non-Leading ledger valuation in local currency), system shows comparisons for four years (2013, 2014, 2015 & 2016) because we have given useful life four years in asset master 300011 for this depreciation area.

Note: System also shows value 10, 000 in fifth year i.e. 2017 this is because we have done asset acquisition in third period of the current year 2013 so in current year system could calculate depreciation only for 10 months and for remaining 2 periods, depreciation will be posted in year 2017 (5, 000 x 2 = 10,000).

Now display the comparison value of delta depreciation area 55. Here we can see that system shows the difference value between area 01 and 30 under depreciation area 55.

Example: For the year 2013, ordinary depreciation is 1, 00,000 in depreciation area 01 and for area 30 ordinary depreciation is 50, 000 in the same year so difference 50,000 (area 01minus area30) has shown under delta area 55. See the below picture:

10. Display Asset APC general ledger line items

The asset acquisition posting which is made in the leading ledger is automatically posted into the non-leading ledger also. Display G/L line items for asset ‘Furniture’ APC account for ledger 01 and 30 and notice that system has updated the same value in both the ledgers.

Choose ledger ‘X1’ by clicking on “Choose Ledger” button.

Execute and see the balance:

Now choose ledger ‘0L’ by clicking on “Choose Ledger” button and execute:

11. Run periodic asset depreciation

When we run depreciation program using below menu path or transaction code, system posts separate documents in each ledgers i.e. ledger ‘0L’ and ledger ‘X1’ with their respective depreciation amount according to depreciation key assigned in asset master data for each depreciation area.

First execute test run and then update run as follows:

Execute:

Notice that system has created two separate depreciation documents with different values for each depreciation area i.e. area 1 and area 30. Since area 1 is assigned to ledger ‘0L’ and area 30 is assigned to ledger ‘X1’ in customizing so system will post separate depreciation values to each ledger.

12. Display depreciation GL line items

Display “book depreciation G/L account” line items for the each ledger using following menu path or transaction code:

Display balance for Leading Ledger – 0L

Display balance for Non-Leading Ledger –X1

Notice that system has posted depreciation value 10,000 for ledger “0L” and 5,000 for ledger “X1”

Thus depreciation amount of 10, 000 under US GAAP is posted in leading ledger ‘0L’ and the depreciation amount of 5, 000 under Indian GAAP is posted in non-leading ledger ‘X1’

13. Asset retirement postings

We will retire the asset through sale for a value of Rs.2, 33,000 so that in US GAAP depreciation area, there will be a gain of Rs.3, 000. On the other hand, there will be a loss of Rs. 2, 000 in the Indian GAAP. The following are the accounting entries which should be updated in each ledger:

But when we do retirement postings in SAP, system does not post the separate values to each ledger i.e. 0L and X1 as explained in the above example rather the entries made in the leading ledger is duplicated in the non-leading ledger. In this case, system will pass the following entry in area 30 (Ledger X1) which is the same accounting entry updated in area 01 (Ledger 0L):

Due to this posting in Indian GAAP area, we can see the following mismatches in Indian GAAP ledger X1:

The reverse of accumulated depreciation is more by 5,000 because 10,000 has been reversed instead of 5,000

There is no posting for actual loss of 2,000 in this ledger

3. Instead a gain of 3,000 has been posted.

To correct all these mismatches, the system automatically posts the entries necessary to reflect the correct position in Indian GAAP (Ledger X1) when we run the periodic asset posting program. This adjustment is done using the Delta depreciation area.

The following entry will be passed for adjustment using periodic program run:

Lets see replicate the above scenario in SAP using the following menu path or transaction code to do asset retirement posting:

Click on “Simulate” button.

Post the document:

Note: Line item 2 is for accumulated depreciation account in the above screenshot.

Display asset values in asset explorer for each depreciation area after retirement as shown below:

Depreciation Area 01:

Display Depreciation Area 30:

Display delta depreciation area 55:

Now display balance for G/L account 30000004 (Profits on asset disposal / sale) after doing asset retirement and notice that system has posted the same value to both ledger i.e. 0l and X1:

Transaction code: FAGLL03

Display balance for ledger X1:

In the above two screenshots, we can see that system has updated same value in both ledgers.

Now we need to correct these values and post the adjustment entry in non-leading ledgers using asset periodic posting as explained earlier in the example, use the following menu path or transaction code:

14. Periodic posting from fixed assets

We use this step to post the adjustment entries to specific ledger since we cannot post directly to reconciliation G/L. As per the retirement adjustment posting, we need to post to accumulated depreciation G/L account also which is reconciliation account.

Give the asset number 300011 in initial screen for which we want to post the adjustment entry.

First execute in test mode and then execute update run as follows:

In the above screenshot, we can see that system posts this adjustment document to ledger group X1 only. When we execute the update run, system creates the following document as per accounting entry explained in the example:

Note: Line item 3 is for accumulated depreciation account in the above screenshot.

Now after posting this adjustment document through periodic run, display balance for ledger account 30000004 (Profit on disposal / sale of fixed assets) for Ledger – X1 and notice that system has posted one reverse entry for the amount 3,000 which was posted during asset retirement:

This way system nullifies the balance of “Profit on sale” account for ledger X1 and posts to “Loss on sale” account, see the below picture:

Finally, after completing the above steps, we will find the GL balances for each ledger as per the accounting entries given in the example as mentioned below:

=====================================================================================

Thanks for your valuable feedback, advice and suggestions.

Please correct me if I have missed out something

Best Regards,

Ram Kumar Swami

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52 Comments

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Sridhar Bolisetti

April 21, 2014 at 5:41 am

Hi Ram Kumar,

Beautiful explanation with the real and practical example. Thank you so much for sharing the knowledge. I believe this is a wonderful piece of document on ASKB functionality in parallel ledger scenario.

Regards,

Sridhar

Like 0

Ram Kumar Swami

Blog Post Author

April 21, 2014 at 11:47 am

Hi Sridhar,

Thanks for your cheerful words, appreciate your feedback.

Best Regards,

Ram

Like 0

Former Member

August 6, 2014 at 6:10 am

Hi Ram,

This is really helpful.

I just tested the same (In my client's Quality environment), noticed that the ASKB entry posted automatically in Non-leading ledger along with the retirement document. Could you please let me know the setting for the same?

BR,

Ram

Like 0

Mariks .

April 25, 2014 at 10:01 am

Thanks for the sharing valuable knowledge...

Like 0

Jagadish K

April 26, 2014 at 1:44 pm

Ram Kumar Swami

Thank you so much for info....................

Like 0

Erwin Leitner

May 6, 2014 at 2:54 pm

Hello,

Really GREAT.Thank you very much.

all the best Erwin

Like 0

Former Member

May 9, 2014 at 9:28 am

Hi Ram,

Document is simple and easy to understand...

Thanks for sharing this...

Regards

Karthikeyan G

Like 0

Ajay Maheshwari SAP Trainer

May 11, 2014 at 5:35 pm

Hi Ram

Very nice document and well explained

Just one change, which you can make to fulfill the purpose of Parallel reporting using Parallel Ledger

You need not assign separate GL accounts for Dep Area 30.. You can use same GL accounts as in Area 01

Br. Ajay M

Like 0

Ram Kumar Swami

Blog Post Author

May 23, 2014 at 10:30 am

Hi Ajay,

Thanks for your feedback and your time to read my ever first document in SCN forum.

I agree with your statement that we do not need to assign separate GL accounts for Dep Area 30 and we can use the same set of GL accounts as in Area 01. I believe I have mentioned the same in this document somewhere in 3rd page as follows:

"We do not have to set up a separate set of GL accounts for this new depreciation area 30. Instead we use the same set of GL accounts of the master depreciation area 01. Depreciation Area 30 uses the GL account set of Depreciation area 01."

Regards,

Like 0

Former Member

May 13, 2014 at 11:40 am

Hi Ram,

Great document!!

One big question. Since you use V3 for India then since AW01N will use the 0L then period 4 will display for 30 where it is actually period 1 for India. I have read OSS Note 844029, so how does one deal with this issue I am reviewing AS91 where the takeover is 31.03.2014 and SAP still thinks it is calculating from January 2014 as US GAAP is "0L"? Will the delta fix this issue if we do depreciation?

I see in SCN that some people have gone for two assets in India, but I still feel the yearly declining balance calculation will still be wrong too.

Regards

Waza

Like 0

Ajay Jawalkar

May 15, 2014 at 7:01 am

Hi Ram,

Beautifully explained.

Thanks for sharing.

Regards,

Ajay

Like 0

Former Member

May 15, 2014 at 6:24 pm

Excellent !!! very helpfull

Like 0

Murali Babu Nallamothu

May 19, 2014 at 2:03 pm

Detailed explanation

Thank you Ram for the document.

Rgds

MBN

Like 0

Ram Kumar Swami

Blog Post Author

June 11, 2014 at 1:28 pm

Hi Murali,

Good to hear from your side, thanks for your feedback.

Regards,

Ram

Like 0

Lakshmi Sama

June 11, 2014 at 11:29 am

Hi Ram,

Content is well exlained in the document and thanks for sharing your knowledge. Keep sharing.

Regards,

Lakshmi S

Like 0

Ram Kumar Swami

Blog Post Author

June 11, 2014 at 1:24 pm

Hi Lakshmi,

Thanks for your increasing words and your feedback.

Regards,

Ram

Like 0

Former Member

June 16, 2014 at 11:18 am

Hi Ram

Thanks for the sharing valuable knowledge

I tried to configure in the system it is working fine but when i am executing FAGLL03 Tcode in which Ledger is is gray mode only "0L" is allowed when i am try to change the Ledger to "B1" following error is coming

Ledger B1 may not be used

Message no. FAGL_LEDGER_CUST101

Diagnosis

Ledger B1 is assigned to application FI-PSM. You can only use ledgers that are assigned to application FI-GLF.

Can you please help to fix this error

thanks in advance

Trinath

Like 0

Ram Kumar Swami

Blog Post Author

June 20, 2014 at 6:12 am

Hi Trinath,

Please go through the below thread, hope this may resolve your issue.

There are some sap notes, please go through those notes mentioned in below thread.

http://scn.sap.com/thread/3359226

Thanks,

Ram

Like 0

rahul khanna

July 15, 2014 at 9:41 pm

Excellent document Ram. Appreciate your work here.

Very useful explanations and some really good examples you have explained.

Like 0

Ram Kumar Swami

Blog Post Author

August 4, 2014 at 7:32 am

Thanks Rahul for reading the document and your feedback. Happy to hear that document is understandable with examples.

Like 0

Former Member

August 4, 2014 at 4:10 pm

Hi Ram,

Thanks for your document, it is well explained - even if I couldn't resolve my issue:

In my particular problem, the ASKB is generating a journal entry exactly opposite to what I was expecting.

Do you think that it could be the setting of the equivalent of your 55 Delta depreciation are?

there is an aera where signage is mentioned

Thank you again for sharing your lights, much appreciated

KR - Loïc

Like 0

Former Member

September 24, 2014 at 11:37 am

Hello Ram,

Great Job. But when i was trying to implement your described solution, i faced some problems ragarding target ledger. Im unable to create it, since there arent any IMG points.

We use ECC 6.0 and normal standard GL.

Maybe its because we didnt activate New GL?

Regards

Laurynas

Like 0

Ram Kumar Swami

Blog Post Author

October 29, 2014 at 9:53 am

Hi Laurynas,

Thanks for your feedback.

Yes you are right, since the New GL has not activated, you are not getting the IMG node for defining paralle ledger (Target Ledger).

Thanks,

Ram

Like 0

Former Member

September 29, 2014 at 5:32 am

HI Ram,

Really a good document, the process is explained so well.. Thanks for sharing here..

Regards

Pragya

Like 0

Ram Kumar Swami

Blog Post Author

October 29, 2014 at 9:56 am

Hi Pragya,

Thanks for reading the document and liking the same.

Appreciate your feedback.

Thanks,

Ram

Like 0

Former Member

October 16, 2014 at 9:54 pm

Hi Ram,

we have implimented the same scenario for one of my client one year back..

they way you explained really great and easy to understand.

In this process there is draback when we transfer the asset from one asset to another asset after depreciation posted (intercompany) with contra account which is also used for intercompany posting with open item management .

Error will encounter only when we do ASKBN as open item managed GL are not permited in periodic posting

Regards,

Kumar

Like 0

Ram Kumar Swami

Blog Post Author

October 29, 2014 at 9:58 am

Hi Ravi,

Thanks for adding the relevant information here regarding the process.

I haven't perform that step so could not mention the same in document.

Thanks,

Ram

Like 0

Former Member

January 22, 2015 at 7:35 pm

Dear Ram,

Nice explanation step by step.

Keep sharing the knowledge.

Regards,

Satya

Like 0

Former Member

February 26, 2015 at 2:26 am

Excellent document

Like 0

Former Member

February 28, 2015 at 8:08 am

Good Efforts Keep it

Regards

Ramesh

Like 0

Former Member

March 17, 2015 at 12:02 pm

Thanks for sharing, nice document.

SKKS

Like 0

Former Member

April 6, 2015 at 6:25 am

Good document with detail explanation...

Keep going!

Like 0

Former Member

July 3, 2015 at 10:01 am

Hi Ram,

Thanks for this posting. I understand that now with Simple Finance on HANA or S/4 HANA it won't be necessary to run as a periodic process the Posting of APC values in the parallel ledger. Have you already some experience with that?

One last question, I understood from your document that the leading Ledger must be allocate to the depreciation area 01, right? And the non-leading ledgers to the other parallel areas. What sounds still confusing to me is that usually the GL Leading Ledger should represent the Group GAAP, while the depreciation area 01 the "book value". ==> Question: Is then the depreciation area 01 "book value" the space where you should post values according the Group GAAP? I had understood that this group valuation was usually represented by the area 30 (?).

Best

Juan C.

Like 0

Former Member

July 28, 2015 at 6:10 am

Hi Juan,

In fact from EHP7 there is a new solution for parallel valuation in asset accounting.More information in OSS note 1776828. It is not necessary to have HANA or Simple Finance to implement this solution, but I think to implement Simple Finance it is mandatory to implement New Asset Accounting.

Regards,

Arjun

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Former Member

August 25, 2015 at 11:13 am

Hi Ram,

I enjoyed reading and this helped me to go through Asset Accounting concepts which i have done 2 years back in one the live Projects in my first Company.

Thank you once again for the time and effort that you have spent in bringing up this document.

Regards,

Ajay.

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Srinivas Nooni

September 22, 2015 at 4:41 am

Hi,

its really nice document and good efforts thanks for sharing your knowledge. i really like business examples with different scenarios. nice work.

Regards

Srinivas

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Amar Lal Lohano

May 19, 2016 at 11:01 am

Hi Ram Kumar,

Really exceptional document with every step configured perfectly. Really appreciate your handwork. I was looking for working multiple ledgers and multiple depreciation areas. This document is the one what i needed the most.

Thank you so much bro for such a wonderful job.

Best Regards,

Amar Lal Lohano

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Former Member

May 25, 2016 at 7:11 am

Hi Ram,

Beautiful document. Thanks for sharing your knowledge. What else i can do except giving 5 rating

Regards

Karthi

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Former Member

June 19, 2016 at 2:53 am

Hi Ram,

I have posted a thread today about the same scenario you have outlined.

I have a question. In this scenario how is it possible to have a different depreciation calculation rate for one asset? I am referring to Point No. 6 above.

6. Scenario for parallel ledgers

Create an asset master for ‘Furniture’ with straight-line depreciation method with the following parameter controls:

Please advice.

Thanks

Srutha

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Ahmed Almuwallad

July 14, 2016 at 3:49 am

Ram,

Thank you so much for the document.

Although it's been 2 years since I last read it but i coming back for refreshment

Thanks alot

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Arvind Pereira

September 17, 2016 at 8:04 am

Hi Ram,

Earlier path:

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Valuation -> Depreciation Area-> Define Depreciation Area

The path has now changed to:

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting (New)-> General Valuation -> Depreciation Area-> Define Depreciation Area

Thanks

Arvind Leo Pereira

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Gabriel Felipe Coleti

September 20, 2016 at 9:48 pm

Dear Ram,

Thank you for sharing. Nice document.

Best regards,

Gabriel Coleti

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Ana Catarina Pires

October 14, 2016 at 11:49 am

Hi Ram, This exposition is really helpful.

Thank you, Best regards, Catarina

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Manoj Jamkhedkar

February 1, 2017 at 11:19 am

Hello Ram

In My Case i am Useing Transaction code ABAVN - Scrapping where system automatically creates delta reversal document . At this stage GL Balance looks as desire . but when i run ASKBN its post again one document to Non Leading ledger which creates duplicate posting . So at the time of ABAVN i am having 2 posting in Non leading ledger with + and - but when i run ASKBN it again create with -

Can you please advice

Manoj J

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Raul Martin Garay

August 28, 2017 at 2:57 pm

Hello Ram

Followed the explanation and applied the changes, We expect an issue, our new parallel depreciation area 02 , gets afected by any change applied to depreciation area 01.

Warning message. Values for Ordinary deprec. have changed in dep. area. We have checked and confirmed that only has been change the usefull life in are 01 for that fixed asset. ¿How it is posible? ¿Should not be working independly?

thanks

Raul

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Rajiv Singh

January 10, 2018 at 3:54 am

Hello Ram, can I reach out to you for additional questions?

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Rajiv Singh

January 11, 2018 at 4:24 pm

quick q - for tis step - 3. Determine Depreciation Areas in the Asset Class

the depreciation keys you use for both depreciation areas are the same, since we are trying to use different rates, these should be different correct?

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Giovanni Landi

February 6, 2018 at 4:47 pm

Hi Guru,

How can I transport in other environments the OADB_WZ activity?

thanks and Best regards

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Nagarjun Nagarjun

June 26, 2018 at 6:54 pm

HI Ram Kumar,

In this Document missing one configuration part.

Could you please send me the T:Code: OABT Screenshot. it will help me.

could please send me the entire Configuration for this document.

Regards

Nagarjun

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Jean Franco Caringi Nava

April 5, 2019 at 1:33 am

Terrific work!

Is there a similar blog for “Parallel Valuation Method: Accounts Approach”?, as metioned here: https://help.sap.com/doc/7851ec9a16b04ee9926e2487da804f31/1610%20001/en-US/11a9445269598544e10000000a44538d.html

Thanks in avance!

Like 0

Maggie Liu

August 21, 2019 at 3:46 am

hi,Ram

Very thank you for your helpful post,it makes me have a clear mind about parallel account for FA,I have the same case now,but the difference is that I have 3 different currency in my system,company code currency VND,2nd currency is CNY and the 3nd currency is USD,if we only set one delta depreciation area,how can it handle with 3 different currencies at the same time with these variance?How do I set

this in sap system?

Please give me some idea if you know it,thank you in advance.

Maggie

Like 0

Sanjay Ram

February 15, 2022 at 6:37 am

Hi Ram,

Thanks for the great document. However, i was thinking why do you need the delta depreciation area to compute the differences when you can use the second depreciation area to directly book the values for Indian GAAP?

财务发现2020财年待处理财产损益，部分原因是由于前年（2019财年）转资产多转一次，强烈要求把多转的资产原值转出，对冲待处理财产损益！

这帮家伙闲的慌，前年都没有发现，到2020财年年结才发现！

o(*￣︶￣*)o，为啥是2021.6月处理，因为自定义SAP财年，不是使用自然年度做财年。

好吧！作为一个干饭人，内部BP就是我们上帝，上帝需求必须满足。

1、开始尝试直接F-02录入凭证 DR: 40 待处理财产损益 CR:75 资产（业务类型100），直接弹出个框框：

SAP限制不给直接负资本化前年资产

2、再想别的方法，资产重估ABAW(转别人案例）

生成凭证：DR:营业外支出 CR:减值准备，使用减值准备不好，按例资产减值不允许冲回。

3 最后方法，好吧，使用计划外折旧ABAA

生成凭证： CR: 75 固定资产 DR: 40 费用科目

最后手工F-02录入： DR: 40 待处理财产损益 CR:50 费用科目

O(∩_∩)O哈哈~，符合财务要求，刚好多出资本化原值冲销掉待处理财产损益！

你说还有问题................................................

多提累计折旧咱办，先偷个懒再说。

发布于 2021-06-18 15:25

Former Member

April 20, 2012 4 minute read

Parallel Currencies in Asset accounting

434860,595

In Financial accounting apart from the loacal currency we can define two additional currencies for the company code. The main purpose of using parallel currencies is to maintain the G/L accounts in different currencies. The companies which have subsidiaries in different countries use parallel currencies to update the foreign business transactions in different foreign currencies (parallel currencies).

We can use various currency types for the parallel currencies such as Group currency, Global Company currency, Index based currency and Hard currency.

The purpose of using parallel currencies in Asset accounting is to maintain the fixed asset values such as APC and Depreciation in different currencies.

1. Define Currencies for leading ledger: (OB22)

SPRO–>Financial Accounting (NEW)–>Financial Accounting Global settings–> Ledgers–> Ledger–>Define currencies for Leading ledger

Here you define the additional currencies that you want to use

2. Define Depreciation Areas:

SPRO–>Financial Accounting (NEW)–>Asset accounting–>Valuation–>Depreciation Areas–>Define Depreciation Areas

Depreciation areas 1, 2 and 3 i.e. Book Depreciation, Special tax Depreciation and Derived Depreciation are already defined in the system. Just select 0, Area do not post for Depreciation area 2

3. Define Depreciation Areas for Parallel Currencies:

We should always copy the depreciation areas from the real depreciation area when creating depreciation areas for the parallel currencies. Since, we are using two parallel currencies i.e EUR and USD. We should define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we should define 1 depreciation area for USD and 1 depreciation area for EUR for both Book Depreciation area and Special tax depreciation area. Therefore we will have 4 depreciation areas for parallel currencies 2 for Book depreciation and 2 for Special tax depreciation.

Depreciation areas for parallel currency USD for Book Depreciation

In the same way create one more depreciation area for parallel currency EUR for Book Depreciation

Depreciation areas for parallel currency USD for Special Tax Depreciation

In the same way create one more depreciation area for parallel currency EUR for Special Tax depreciation

4. Specify Area Type: (OADC)

Here you specify the purpose of the depreciation area i.e. for what type of valuation you want to use the depreciation area.

5. Specify Transfer of APC values: (OABC)

Here we specify how the APC values will be transferred to the depreciation areas. For example if you want to show the APC values of a depreciation in foreign currency then you should use the the local currency values as basis, that means for depreciation areas in foreign currency you should use book depreciation as the base. We should also mark the depreciation areas in foreign currency as identical so that the values from the transferring depreciaiton area are transferred without any changes.

6. Specify Transfer of Depreciation Terms: (OABD)

Here we specify the transfer rules for the transfer of deprecation terms to the depreciation areas.

7. Define Depreciation Areas for Foreign Currency: (OAYH)

SPRO–>Financial Accounting (NEW)–>Asset accounting–>Currencies–>Define Depreciation areas for Foreign Currencies

Here we assign foreign currencies for depreciation areas in which we want to them to be valuated.

8. Determine Depreciation Areas in the Asset Class: (OAYZ)

9. Create an Asset: (AS01)

10. Post Asset Transaction: (F-90)

Post a Transaction for the asset.

11. Asset Explorer: (AW01N)

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Neelesh Jain

April 20, 2012 at 10:46 pm

Very nicely explained...

Thanks...

But some screen shots are not visible !!!

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Former Member

Blog Post Author

April 21, 2012 at 7:21 am

Thank you ... you are right two screen shots are not visible. will check it out..

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Narasimhulu Konnipati

April 21, 2012 at 3:53 am

Hi Sneha,

Good document and great effort. Nice to see that you thought of sharing your knowledge with SCN users.

Keep going

Thanks,

Narasimhulu

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Former Member

Blog Post Author

April 21, 2012 at 7:22 am

Thank you ..

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Ravi Sankar Venna

April 23, 2012 at 4:17 pm

Keep up the good work.

Thanks for your valuable contributions to the community.

Regards,

Ravi

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Former Member

Blog Post Author

April 23, 2012 at 5:47 pm

Thank you

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Nathan Genez

April 24, 2012 at 12:59 am

Why did you include steps for the configuration of the depreciation key? That's not directly related to the setup of parallel currencies in FI-AA.

Also, I'd recommend an introduction to the topic. Explain why this setup is required and what the benefit is.

Like 0

Ravi Sankar Venna

April 24, 2012 at 5:01 am

Thanks for your suggestion on this blog. Your time is really appreciated in giving suggestions and encouragement to new members on this community.

May I take the pleasure of putting your asset accounting blogs (hope this would definitely benefit the forum members)

http://scn.sap.com/people/nathan.genez/content

Thanks and Regards,

Ravi

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Former Member

Blog Post Author

April 24, 2012 at 5:12 am

Hi Nathan,

Thank you for reviewing my document. I will make the changes as suggested by you.

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Abhishek Gupta

April 24, 2012 at 6:08 am

Great Presentation .....Great job Done

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Former Member

May 23, 2012 at 8:36 am

Dear Sneha..

Could you advice me on my problem below ?

We are using 3 depreciation area which is :

- 01 Book Depreciation IDR,

- 02 Tax Depreciation IDR

- 99 Book Depreciation USD

while IDR is our company code currency.. (local currency)