Example Scenarios for the Ledger Approach in New Asset Accounting
You have various options for setting up your ledgers and depreciation areas for parallel accounting.
Note
The examples scenarios described below are without depreciation areas for parallel currencies. If you use parallel currencies, then you have to define the necessary parallel currency areas.
For more information about parallel currencies, see Parallel Currencies in New General Ledger Accounting and New Asset Accounting.
Example Scenarios with Controlling
Assumption: If there is no statement to the contrary, then we assume that the following assignments have been made in the following scenarios:
Accounting Principle | Ledger Group | Representative Ledger |
|---|---|---|
LGAAP | LGAAP | N1 |
IFRS | IFRS | 0L (Leading Ledger) |
USGAAP | USGAAP | N2 |
Scenario 1 (Standard Scenario)
The values of depreciation area 01 are posted for the leading accounting principle, and as a result, to the leading ledger. These values are relevant for Controlling (CO). The affected G/L account master records must be regulated accordingly. Depreciation areas 01 and 30 use the same account set.
Depreciation Area | Description | Posting Option | Accounting Principle | Transfer to CO |
|---|---|---|---|---|
01 | Local accounting principle in local currency (EUR) | Area Posts in Realtime | LGAAP | Yes |
31 | International accounting principle (IFRS) in local currency (EUR) | Area Posts in Realtime | IFRS | No |
Scenario 2
The values of depreciation area 01 are posted for the leading accounting principle, and as a result, to the leading ledger. There is an additional cost-accounting depreciation area 20. The values from this depreciation area are transferred to Controlling. The affected G/L account master records must be regulated accordingly. Depreciation areas 01 and 30 use the same account set. Depreciation area 20 uses different accounts.
This scenario shows a ledger approach. Generally, the same account set is used in a ledger approach. However, it is also possible with the ledger approach that you use a different account set for one type of valuation (here for depreciation area 20).
Depreciation Area | Description | Posting Option | Accounting Principle | Transfer to CO |
|---|---|---|---|---|
01 | Local accounting principle in local currency (EUR) | Area Posts in Realtime | LGAAP | No |
20 | Cost-accounting depreciation area (local valuation) | Area Posts Depreciation Only | LGAAP | Yes |
31 | International accounting principle (IFRS) in local currency (EUR) | Area Posts in Realtime | IFRS | No |
Scenario 3
You have three depreciation areas. Depreciation area 20, to which the leading accounting principle is not assigned (and consequently the leading ledger is also not assigned) updates values in Controlling. This scenario is not supported in the standard system, but, you can implement it using a BAdI.
Depreciation Area | Description | Posting Option | Accounting Principle | Transfer to CO |
|---|---|---|---|---|
01 | Local accounting principle in local currency (EUR) | Area Posts in Realtime | LGAAP | No |
20 | Cost-accounting area (USGAAP) | Area Posts Depreciation Only | US GAAP | Yes |
31 | International accounting principle (IFRS) in local currency (EUR) | Area Posts in Realtime | IFRS | No |
Additional Example Scenario
Scenario 4: with Investment Support
If you want to represent investment support, you have to create an additional, real depreciation area for each accounting principle, possibly along with other additional depreciation areas (for example, for parallel currencies).
The following table shows a scenario for investment support managed on the liabilities side:
Depreciation Area | Description | Posting Option | Accounting Principle |
|---|---|---|---|
01 | Local accounting principle in local currency (EUR) | Area Posts in Realtime | LGAAP |
05 | Support based on local laws, in local currency (EUR) | Area Posts in Realtime | LGAAP |
31 | International accounting principle (IFRS) in local currency (EUR) | Area Posts in Realtime | IFRS |
35 | Support based on international laws, in local currency (EUR) | Area Posts in Realtime | IFRS |