Examples of the Posting Logic - SAP Documentation

Initial Data

All of the following examples are based on this initial scenario:

Asset A has a useful life of 10 years. There is a fair value surplus of 100 currency units. The capitalization and valuation allowances task is run once per year.At the end of year 01, a partial divestiture of 50 occurs. The depreciation (devaluation) must be corrected accordingly.

Example 1: Asset in Local Currency (Without Deferred Taxes)

In the master data, you specify the depreciation parameters (straight-line depreciation, no scrap value) and you specify the posting item.

In the additional financial data, you specify the fair value surplus and the partial retirement. (User entries are shown in boldface below.)

Now the system calculates the beginning book value, the depreciation, the reduction in the valuation allowance, and the ending book value.

Postings in Capitalization and Valuation Allowances

	Acquired (LC)	Val. Allow. (LC)	Retired (LC)
Capitalization (orig. value)	100		-50
Depreciation (bal. sheet)		-10	5
Appropriations for asset	-100		50
Amortization and Impairment Losses (income statement)		10	-5
Clearing Item for the Balance Sheet		10	-5
Clearing Item for the Income Statement		-10	5

Additional Financial Data

	Key Figure	Location of Values
Original value	100	Entered by user
Beginning book value	100	Calculated by system
Ordinary depreciation	10	Calculated by system
Divestiture	50	Entered by user
Retirement of valuation allowance	5	Calculated by system
Ending book value	45	Calculated by system

Example 2: Asset in Local Currency and Group Currency (Without Deferred Taxes)

When an asset is carried in local and group currencies, you enter the original value in both currencies:

Postings in Capitalization and Valuation Allowances

	Acq (LC)	Acq (GC)	VA (LC)	VA (GC)	Ret (LC)	Ret (GC)
Capitalization (orig. value)	100	200			-50	-100
Depreciation (bal. sheet)			-10	-20	5	10
Appropriations for asset	-100	-200			50	100
Amortization and Impairment Losses (income statement)			10	20	-5	-10
Clearing Item for the Balance Sheet			10	20	-5	-10
Clearing Item for the Income Statement			-10	-20	5	10

Explanations:

OV = original value (acquisition/production cost)

LC = local currency; GC = group currency

Acq = acquisition; VA = valuation allowance; Ret = retirement

Additional Financial Data

	Key Figure (LC)	Key Figure (GC)	Location of Values
Original value	100	200	Entered by user
Beginning book value	100	200	Calculated by system
Ordinary depreciation	10	20	Calculated by system
Divestiture	50	100	Local currency entered by user; group currency calculated by system
Retirement of valuation allowance	5	10	Calculated by system
Ending book value	45	90	Calculated by system

Example 3: Asset in Local Currency Taking Deferred Taxes into Account

You want the system to post 40% in deferred taxes during capitalization and valuation allowances:

In the document type, you have selected the option to post deferred taxes and specified the percentage rate.

In the additional financial data, you have selected the deferred taxes indicator.

For posting deferred taxes, we will examine the following cases:

Case 3a) Deferred taxes in the balance sheet must not be posted to specific balance sheet items.

Case 3) Deferred taxes in the balance sheet must be posted to specific balance sheet items.

3a) No Specific Balance Sheet Items for Deferred Taxes

Postings in Capitalization and Valuation Allowances

	Acquired (LC)	Val. Allow. (LC)	Retired (LC)	Automatic Line Item
Capitalization (orig. value)	100		-50
Depreciation (bal. sheet)		-10	5
Appropriations for asset	-100		50
Amortization and Impairment Losses (income statement)		10	-5

Appropriations for asset	40		-20	2
Deferred taxes (B/S)	-40		20	2
Deferred taxes (B/S)		4	-2	2
Deferred taxes (I/S)		-4	2	2
Clearing Item for the Balance Sheet		6	-3	1
Clearing Item for the Income Statement		-6	3	1

3a) With Specific Balance Sheet Items for Deferred Taxes

The system posts the deferred taxes in the balance sheet to the deferred taxes items that are specific for the triggering balance sheet items. If a specific item for deferred taxes is not assigned to a triggering balance sheet item, then the system will use the general item for deferred taxes (balance sheet).

Postings in Capitalization and Valuation Allowances

	Acquired (LC)	Val. Allow. (LC)	Retired (LC)	Automatic Line Item
Capitalization (orig. value)	100		-50
Depreciation (bal. sheet)		-10	5
Appropriations for asset	-100		50
Amortization and Impairment Losses (income statement)		10	-5

Deferred taxes (B/S)	40		-20	2
Deferred taxes (B/S)–Capitalization (orig. value)	-40		20	2
Deferred taxes (B/S) – Depreciation		4	-2	2
Deferred taxes (I/S)		-4	2	2
Clearing Item for the Balance Sheet		6	-3	1
Clearing Item for the Income Statement		-6	3	1

Example 4: Asset Retirement at the Beginning or End of the consolidation period (Without Deferred Taxes)

A partial retirement valued at 50 currency units takes place in period 03.The system posts the following depending on whether you have selected Retirement at Beginning of Period

Postings in Capitalization and Valuation Allowances

	Val. Allow.(LC)	Retired (LC)	Val. Allow.(LC)	Retired (LC)
Capitalization		-50		-50
Depreciation (bal. sheet)	-10	15	-5	10
Appropriations for asset		50		50
Amortization and Impairment Losses (income statement)	10	-15	5	-10
Clearing Item for the Balance Sheet	10	-15	5	-10
Clearing Item for the Income Statement	-10	15	-5	10

Additional Financial Data

	Retirement at End of Period 03		Retirement at Beg. of Period 03
	Key Fig. (LC)	Calculation	Key Fig. (LC)	Calculation
Original value	100		100
Beginning book value	80		80
OrdinaryDepr.	10	=OV/10	5	=(OV-Ret)/10
Divestiture	50		50
Reduction in val. allowance	15	=Ret/OV(OV-BegBV+Depr) =50/100(100-80+10)	10	=Ret/OV(OV-BegBV) =50/100(100-80)
Ending book value	35	=BegBV-Depr-Ret+RedVA =80-10-50+15	35	=BegBV-Depr-Ret+RedVA =80-5-50+10

Explanations:

(also see above)

BegBV = beginning book value

RedVA = reduction in valuation allowance