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Implementing a Further Accounting Principle in Asset Accounting

Use

Asset Accounting supports the implementation of a further accounting principle.

From an Asset Accounting point of view, the project runs as follows: You first create the target depreciation areas for the new accounting principle; these must first show the same Customizing settings as the source depreciation areas. The transaction data of Asset Accounting from the source depreciation areas is then transferred 1:1 to the target depreciation areas. You then adjust the Customizing and transaction data of the target depreciation areas so that it matches the requirements of the new accounting principle.

Technical Details

Technical Name of Product Feature

SFIN_SIL1610_S4HOP

Product Feature is

New

Country Dependency

Valid for all countries

Application Component

Asset Accounting (FI-AA)

Available As Of

SAP S/4HANA 1610

Additional Details

Asset Accounting is represented in the three phases of the project as follows:

  • Preparation Phase: You create the new target depreciation areas and define the necessary Customizing settings for the target depreciation areas. For this, it is necessary that the Customizing of the target depreciation areas first corresponds with that of the source areas. You assign the source to the target depreciation areas; you always have a 1:1 assignment of source to target depreciation area except for investment support areas.

  • Execution Phase: The values are transferred from the source to the target depreciation areas 1:1. The system hereby posts all the documents of the current fiscal year relevant for Asset Accounting to the target accounting principle (so-called reposting of documents). As such, the system generates a data basis without value change in the new accounting principle. You can check whether the values in the source and target accounting principles match using the balance sheet, profit and loss statement and the asset history sheet (so-called reconciliation).

  • Postprocessing Phase: In order to ensure that the values comply with the regulations of the new accounting principle, you must make corresponding adjustments (especially adjustment postings). It is best to work closely together with your auditor for this.

The values will then be adjusted to suit the new valuation in the fiscal year of the implementation. At the end of the fiscal year you can then create the closing in the new accounting principle.

Constraints

  • It is not possible to transfer a statistical depreciation area that exists in the source accounting principle to the target accounting principle and enrich it with data from the source depreciation area. Examples of such statistical areas include: Areas for investment support (asset-side), cost-accounting areas and foreign currency areas.

  • The new accounting principle must be implemented for all company codes that belong to a chart of depreciation. Or, if necessary, you must split one chart of depreciation into several charts of depreciation.

  • For company codes that are no longer actively used, so for those company codes in Asset Accounting where only subsequent reporting is allowed, no new accounting principle can be implemented subsequently.

  • In the fiscal year in which the new accounting principle should be implemented, you are not allowed to have several legacy data transfers during the year with different transfer dates in one company code (for which transfer documents were posted). In such a fiscal year, it is not possible to implement a new accounting principle for this company code.

  • Depreciation areas in the source accounting principle and in the target accounting principle must match in number and definition. There are however the following exceptions:

    • Statistical depreciation areas cannot be assigned to the corresponding target depreciation areas, and, as such no values can be created.

    • For depreciation areas that map investment support on the liabilities side, the following applies:

      • You can assign several investment support depreciation areas on the liabilities side from the source accounting principle to an investment support depreciation area on the liabilities side in the target accounting principle. Prerequisite for this is that these areas from the source accounting principle are defined with the same parameters and that they use the same account determination.

      • It is not possible to assign an investment support depreciation area on the liabilities side from the source accounting principle to several investment support depreciation areas in the target accounting principle.

      • If the investment support depreciation areas in the source accounting principle are no longer being used (in other words, the areas contain neither a value carried forward nor data in the fiscal year of the implementation of a new accounting principle), then you do not need to create any corresponding target depreciation areas.

    • For revaluation areas, the same applies as for depreciation areas that map investment support on the liabilities side.

    • If there are depreciation areas in the source accounting principle that represent transferred reserves on the liabilities side, you do not necessarily need to create the corresponding depreciation areas in the target accounting principle.

    Effects on Existing Data

Existing data in Asset Accounting is not changed when a further accounting principle is implemented.

Effects on Data Transfer

When you create a new accounting principle, the data from the source accounting principle is transferred without any value changes for the fiscal year of the implementation by reposting. This means that: Immediately after the data transfer the source and target accounting principles have the same values. You can easily reconcile these values and thereby check the data transfer.

Only those documents are transferred that were posted in the fiscal year when the new accounting principle was implemented. Documents that were posted in the previous years are not transferred.

Note the following exceptional cases:

  • If a business transaction is posted and reversed in the fiscal year of the implementation of the new accounting principle where an asset account is involved, then these documents are notreposted to the new accounting principle. The same applies for real reversals, so a reversal in Financial Accounting or Asset Accounting. If you have reversed a business transaction using Materials Management, this is referred to as an inverse posting. This business transaction and its cancellation are both reposted in the new accounting principle.

  • In your source accounting principle you manage a depreciation area that represents transferred reserves on the liabilities side and manages values. If you have not created and assigned the corresponding depreciation area in your target accounting principle, you cannot reconcile the G/L account Offsetting Account for Transferring Reserves in the financial statements.

  • After you have checked and confirmed the data transfer, you must then manually maintain the settlement rule for the newly created depreciation area. Only then is it possible to settle the independent assets under construction (AuC with line item settlement) and to reverse documents.

Effects on Customizing

The Customizing settings for implementing a further accounting principle are made in the Implementation Guide under Start of the navigation pathFinancial Accounting (New)  Next navigation step Financial Accounting Global Settings (New) Next navigation step Tools Next navigation step Subsequent Implementation of a Further Accounting PrincipleEnd of the navigation path. There you will also find Customizing activities relevant for Asset Accounting.

Additional Information

For more information, see: