Types of Assets/Liabilities (ALTYPE)

You use the Type of Assets/Liabilities attribute to classify your assets and liabilities into types such as buildings, plant and equipment, or vehicles.

For each type of asset/liability, you specify which items are to be posted.You do this in the process view of the consolidation workbench at Consolidation Functions → Capitalization and Valuation Allowances → Type of Assets/Liabilities

To create a type of asset/liability (for example, “Plant and Equipment”), go to Capitalization and Valuation Allowances and chooseType of Assets/Liabilities ; then, in the bottom left area of the workbench screen, call up the context menu and choose Create

Assign a two-digit numeric key and enter a name for the type of asset/liability (for example, “Plant and Equipment”).

Specify the debit/credit sign (“+” for assets, “–“ for liabilities) on the General tab page.

On the Items for Original Cost tab page, you can specify the following items and transaction types (if applicable):

Acquisitions and retirements

Transfers

Acquisitions and retirements for appropriations for assets

You also can define the posting items for acquisitions and retirements, and also transfers, in the master record of the asset itself.(Settings made there override the settings made for the type of asset/liability. )

On the Items for Valuation Allowances tab page, you can specify the following items and transaction types (if applicable):

Acquisitions and retirements for valuation allowances (balance sheet items)

Transfers for valuation allowances (balance sheet items)

Depreciation and writeups (income statement items)

You also can define these items in the master record of the asset itself.(Settings made there override the settings made for the type of asset/liability. )

InfoObject for Assets/Liabilities (Using Fair Value Differences as an Example)

Assume you have defined the InfoObject for assets/liabilities in the data basis – for example, for fair value differences. This InfoObject is compounded with the InfoObject (or InfoObjects) for consolidation unit(s) and, possibly, with another InfoObject (for example, “Fair Value Difference Main Number”). These values are listed in a tree structure in the bottom left screen area of the workbench.

You perform these steps to create a new value for a specific fair value surplus or fair value deficit:

Choose the consolidation unit for a given type of asset/liability (and the fair value difference main number, if applicable), call up the context menu, and choose Create

Assign a name to the fair value difference.

The General tab page displays the type of assets/liabilities.

Determine whether you want to post deferred taxes during the capitalization process.

The following table illustrates which indicators to select if you want to post deferred taxes during capitalization and valuation allowances:

Customizing Settings for Posting Deferred Taxes

Determine whether fair value differences should be carried in local currency only.

Specify the parameters for valuation allowances (start of depreciation, useful life, method of depreciation, scrap value, and so on).

In the system, fair value difference entries have no technical relationship with the depreciation parameters of their corresponding assets.

On the Items for Original Cost tab page, specify the posting items for the capitalization.(See also the previous section concerning the customizing of the type of assets/liabilities .)

On the Items for Valuation Allowances tab page, specify the posting items for the valuation allowances.(See also the previous section concerning the customizing of the type of assets/liabilities .)

Document Type

You can create one or more document types for capitalizations and valuation allowances.

Such a document type must have the following properties:

Posting level 10 (adjustments to reported financial data)

Error if balance not equal to zero

Application: Other

Automatic posting

No automatic inversion

Local currency/group currency:

Post in local currency if you want to carry assets/liabilities in local currency only. In this case, the task must be followed a currency translation task (see below).

Post in group currency if you want to carry historical values in group currency, in addition to the values in local currency.

Recording of deferred taxes during valuation allowances, if applicable (see the table above)

Save the document type.

Task

You can create one or more tasks for capitalizations and valuation allowances. You may want to create multiple tasks in the following cases:

You have multiple types of assets/liabilities and you do not want some of these types to be used in consolidation of investments. In the calculation base for consolidation of investments, you need to choose those document types for capitalization and valuation allowances that should be included in consolidation of investments.

You want certain tasks to post deferred taxes, and other tasks to not post deferred taxes.

Create a task.(You can do this the process view of the consolidation workbench under Consolidation Functions → Capitalization and Valuation Allowances → Task )

Assign a name to the task.

Specify the consolidation frequency for the task.

Assign one or two document types to the task, depending on the currencies you will carry the assets and liabilities in:

If all assets and liabilities will be carried in local currency only, choose a document type that translates foreign currencies.

If the assets and liabilities will be carried in local currency and group currency, choose a document type that does not translate foreign currencies.

See also the respective field help texts.

If applicable, restrict the task to certain types of assets/liabilities.

If desired, specify your preferences for the task log .

Save the task.

Currency Translation

If you carry the assets and liabilities in local currency only, you need to subsequently run currency translation to translate the amounts into group currency.

See Dependencies of Customizing on Which Currencies Are Carried .