Parallel Valuation (SAP Library - Asset Accounting (FI-AA))

Parallel Valuation

Purpose

Alongside the posting of depreciation (using the depreciation posting run), the most important periodic processing you perform is the posting of changes to asset balance sheet values. These changes consist of all postings that affect the APC of the asset, including acquisitions, retirements, and so on.

You need to post changes to asset balance sheet values from more than one depreciation area to the general ledger, if one of the following applies:

You need to create different balance sheet versions, for example, for internal and external purposes. You can define any number of balance sheet versions per chart of accounts in FI (General Ledger) for this purpose.

You have a group depreciation area in a foreign currency, and you need to post changes to asset balance sheet values from this area to the ledger of the corporate group (see below).

You calculate special reserves for special depreciation in a derived depreciation area. (This is common in Germany in depreciation area 03 of the standard chart of depreciation.)

Process Flow

At the present time, online automatic posting to Financial Accounting is only possible for one depreciation area. It is therefore necessary that changes to asset balance sheet values (transactions) from other depreciation areas be posted to the respective G/L accounts on a periodic basis.

Parallel Valuation

These G/L accounts that you post to periodically are not permitted to be reconciliation accounts (per the indicator in the master record for the account).

Batch Input Session

Using a report (Periodic Processing ® Periodic Posting) you create a batch input session. When the Post assets periodically to General Ledger indicator is set in the definition of the depreciation area, this batch input session posts all changes to asset values (APC) from these depreciation areas to the respective G/L accounts. When you process the batch input session created, the system posts the APC transactions to the accounts in the account determination of the depreciation area.

The report generates one document for each month. This document has a line item for each account or business area. These line items are created in the same way as those for the online posting transaction.

The field status of the G/L account is the determining factor for whether the cost center, profit center, order, or consolidation transaction type are taken into account.

Start Parameters

When starting the report, you can enter only the company codes, not the periods to be posted. The report always posts all transactions that took place up to the start date of the report, and which were not yet posted to the general ledger.

Always carry out the report using background processing, in order to improve system performance. Therefore, start the report as a background job. In the report selection screen, choose Program ® Execute in background.

The accounts for parallel valuation are not permitted to be reconciliation accounts.

Corporate Group Ledger

The system always uses the consolidation transaction type from the originally used transaction type when both of the following apply: the system is posting a transaction affecting APC values and this transaction is from a depreciation area for parallel valuation that is posted periodically to the general ledger.

The system requires the posting amount both in the foreign currency and in the local currency for the group consolidation. Therefore, for APC postings, the system posts the amount in group currency from the group depreciation area to the corporate group ledger, in addition to the amount in the local currency from the group depreciation area managed in local currency. For more information, see Requirements for Consolidation

Special Reserves

There are also derived depreciation areas that do not manage acquisition and production costs, but that are used for creating special reserves (for example, area 03 special tax depreciation for Germany). These depreciation areas also have to be posted periodically as parallel valuation. For these derived areas, the program posts the proportional value adjustments resulting from retirements, transfers, post-capitalization, and so on.

An asset has the depreciation areas 01-book depreciation, 02-tax depreciation, 03-special depreciation (derived from 02 minus 01). You post a complete retirement to this asset (asset value date 12/31). The acquisition and production cost was 1000, the asset has a useful life of 10 years, and is in the 4th year of use. The three depreciation areas would then have the values below:

Area

01

02

03

APC

1000

1000

0

Prop. accumulated depreciation

-300

-600

-300

Prop. depreciation current fiscal year

-100

-50

50

Current book value

600

350

-250

The system posts the 600 being retired from the book depreciation area online automatically within the framework of the retirement transaction. No automatic posting takes place for area 02. The write-off of the special reserve amount of -250 is carried out by the periodic posting of changes to asset values in area 03.

For more information on parallel updating of depreciation areas in the general ledger, see Depreciation Areas.

Area	01	02	03
APC	1000	1000	0
Prop. accumulated depreciation	-300	-600	-300
Prop. depreciation current fiscal year	-100	-50	50
Current book value	600	350	-250