FI-AA, Parallel Valuation

Technical Data
Technical Name of Business Function	FIN_AA_PARALLEL_VAL
Type of Business Function	Enterprise Business Function
Available As Of	SAP enhancement package 7 SP02 for SAP ERP 6.0
Technical Usage	Central Applications
Application Component	Asset Accounting (FI-AA) General Ledger Accounting (FI-GL) (New) with the Ledger Approach
Prerequisite Business Function	Financials Extension (EA-FIN)
Incompatible Business Function	JVA, Integration with New General Ledger Accounting (JVA_GL_INTEGRATION)

This business function supports you with parallel accounting. Asset Accounting performs real ledger-group-specific postings. In contrast to the use of delta depreciation areas, postings are now fully clear and trackable. In addition, this opens up improved options in reporting.

Note Note

Asset Accounting with active business function and active Customizing switch is referred to below as "new Asset Accounting" or "FI-AA (new)". Asset Accounting prior to this is referred to as "classic Asset Accounting" in order to distinguish the two.

End of the note.

You can now flexibly assign the depreciation areas of new Asset Accounting to the ledger groups of the general ledger. The fixed linkage of depreciation area 01 to the leading ledger in the general ledger no longer applies. The system posts parallel values with the actual values in realtime; separate documents are posted for each valuation. This means the posting of delta values has been replaced; as a result, the delta depreciation areas are no longer required.

You must or should activate business function (FIN_AA_PARALLEL_VAL) in the following cases:

You want to use the SAP application for asset accounting for the first time: In that case, we recommend that you activate this business function (FIN_AA_PARALLEL_VAL).
You want to use the business function FI-GL (New), Change in Leading Valuation (such as IFRS) (FIN_GL_CHNGE_LDG_VAL). In that case, it is mandatory that you activate the current business function (FIN_AA_PARALLEL_VAL).
You are already using classic Asset Accounting. You also want to make postings in all valuations (for all accounting principles) in real time. You want to be able to comprehend the postings of all valuations, without having to take into account the postings of the leading valuation, as was previously the case.
The following details the advantages you gain by using new Asset Accounting:
- Realtime postings in all valuations
- Leading valuation made more flexible
- Parallel documents for each valuation that post correct values from the beginning
- Abolition of delta areas for parallel valuation
- Simplification of your chart of depreciation
- Valuation-specific postings by means of restriction to ledger group or depreciation area (that is, real ledger-group-specific postings); the restriction of transaction types to depreciation areas no longer applies
- different fiscal year variants for each valuation (restriction: start date and end date of the fiscal year variant must be the same.)
- Straightforward assignment of different accounts for each valuation within an asset class
- Simplified management of goods that are to be capitalized in accordance with one set of accounting principles, but are to be posted to expense in accordance with a different set.

Integration

Activating and setting up this business function (FIN_AA_PARALLEL_VAL) is the prerequisite for the business function FI-GL, Change in Leading Valuation (such as to IFRS) (FIN_GL_CHNGE_LDG_VAL). When you change the leading valuation, it is possible to change the accounting principles underlying the group valuation without having to adapt the configuration of new Asset Accounting or change the historical transaction data.

Prerequisites

For you to be able to use this business function, the following criteria must be met:

You have installed the following components from the version specified:

Type of Component

Component

Is used only for the following functions

Software Component

SAP_FIN 617

EA_FIN 617

—
You have set up and activated the application component General Ledger Accounting (FI-GL) (New).
- To handle parallel accounting principles, use the ledger approach.
You have activated the Financials Extension (EA-FIN) business function.
You have configured the classic Asset Accounting (FI-AA) application component.
- From the Financials Extension (EA-FIN), you use the new depreciation calculation with the depreciation calculation program (DCP).
Or: If you have not previously used classic Asset Accounting, you need to make all of the necessary Customizing settings for new Asset Accounting.
You need to activate this business function FI-AA, Parallel Valuation (FIN_AA_PARALLEL_VAL) for new Asset Accounting.

Type of Component	Component	Is used only for the following functions
Software Component	SAP_FIN 617 EA_FIN 617	—

The activation of this business function (FIN_AA_PARALLEL_VAL) is effective system-wide. However, you prepare and activate the functions for new Asset Accounting for each client separately in Customizing. As a result, it is possible for you to use new Asset Accounting for the ledger approach in one client, while you can use classic Asset Accounting for the account approach in another client.

If you want to use new Asset Accounting in a client, you are not allowed to use any of the following components:

Joint Venture Accounting (JVA)
You cannot activate new Asset Accounting in company codes in which JVA is active, and the reverse is also true.

The business function JVA, Integration with New General Ledger Accounting (JVA_GL_INTEGRATION) is also not compatible with new Asset Accounting.
From the Financials Extension (EA-FIN): Lease Accounting Engine (LAE)
The LAE controls postings for the lessor scenario; this scenario consists of the components CRM Leasing (CRM-LAM) and Leasing Accounting (FI-LA).
Real Estate (RE), that is, classic Real Estate Management
From Funds Management (PSM-FM) or Industry-Specific Component Public Sector (IS-PS): Requests with Reference to Asset
The function Requests with Reference to Asset is not allowed to be used together with new Asset Accounting.

If you are already using classic Asset Accounting and want to change to new Asset Accounting, the following additional prerequisites apply:

Make sure that the periodic asset postings (with program RAPERB2000) are completed.
Also ensure that there are no update terminations from direct postings in the system. The parallel currencies in General Ledger Accounting and in the depreciation areas in Asset Accounting must be the same. If you have previously 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 first implement these depreciation areas before you can activate new Asset Accounting. Contact your consultant.

When you activate the business function, that does not yet change the way your Asset Accounting functions. However, a separate IMG structure for new Asset Accounting appears in the SAP Reference IMG under Financial Accounting (New): Asset Accounting (New). This IMG structure also contains the Customizing switch for new Asset Accounting under New Asset Accounting: Preparation and Activation.

You start the configuration of new Asset Accounting with this Customizing switch. You then make the necessary Customizing settings. And ultimately, you activate new Asset Accounting by setting the Customizing switch to Active.

For more information about the changeover and the Customizing settings, see the release note FIN_AA_PARALLEL_VAL: FI-AA, Parallel Valuation and Customizing for Asset Accounting (New) under New Asset Accounting: Preparation and Activation.

Caution Caution

The Customizing switch that you use to start Customizing for new Asset Accounting is not reversible.
When you introduce new Asset Accounting in a client, it replaces classic Asset Accounting.

End of the caution.

Features

For more information about the new functions, see the following:

Function	Documentation
Parallel Valuation in New Asset Accounting	Parallel Valuation Methods in new Asset Accounting Ledger Approach in New Asset Accounting Example Scenarios for the Ledger Approach in New Asset Accounting Parallel Currencies in New General Ledger Accounting and New Asset Accounting
Chart of Depreciation with Depreciation Areas	Example:Chart of Depreciation with Depreciation Areas and Ledger Groups
Integrated and Non-Integrated Acquisitions and Retirements	Integrated Asset Acquisition Posting Example 1: Acquisition, Integrated Posting Example 2: Acquisition, Integrated Posting Example: Acquisition, Non-Integrated Posting Example: Integrated Retirement Posting (with Parallel Valuation)
Management of goods that are to be capitalized in accordance with one set of accounting principles, but are to be posted to expense in accordance with a different set	Unilateral Assets Examples: Integrated and Non-Integrated Acquisitions and Retirements for Unilateral Assets.

More Information

For a detailed list of the new functions delivered with this business function as well as information on the Customizing settings, see the central release note FIN_AA_PARALLEL_VAL: FI-AA, Parallel Valuation as well as the detailed release notes accessible from this central release note.
For comprehensive application documentation about the individual functions of new Asset Accounting, see the SAP Library under SAP ERP SAP ERP Central Component Accounting Financial Accounting Asset Accounting (FI-AA) (New) .

Using the Business Function in SAP Accounting powered by SAP HANA

New Asset Accounting is available in SAP Accounting powered by SAP HANA. You do not need this business function in SAP Accounting powered by SAP HANA, as the related functions are available anyway without them being linked to the business function. To be able to use the related functions, you do not have to activate the business function.