FI-LC: Extended Functionality for the Elimination of Asset Transfers
Description
The following enhancements were made to existing functionality:
1. Reporting the retiring and acquiring
company
- Asset number and subnumber
- Actual start of the depreciation
- Method of depreciation with percentage rate and life
- Financial statement items for APC and VA (value adjustment)
- The book values and the sales revenue are now only reported in group currency
The elimination program now uses the following logic:
- The sale of the fixed asset is reversed at the retiring company and the full depreciation is posted as of the transfer date based on the reported book values and the method of depreciation for this company.
- The purchase is reversed at the acquiring company. The depreciation reported in individual financial statements is also reversed based on the reported sales revenue and the method of depreciation.
- Any gain or loss is eliminated.
- The net book value is shown as a transfer with reversed signs for both companies.
- Also the difference of the depreciation, resulting from different book values or different methods of depreciation, is shown as a transfer for both companies.
- In this case, former releases merely posted a difference for the transfer elimination and depreciation adjustment.
1. With the reporting of the data, you can
furthermore set the following control parameters:
- specification of a special version for reporting asset transfers
- deselection of depreciation adjustment (e.g., when transferring land)
- reclassification of fixed assets created by the user, but not activated
- resale of the transferred fixed asset within or outside of the corporate group
2. When starting the elimination, threshold
values can be specified for
- acquisition costs
- value adjustments
- gains/losses
When specifying one or several of these parameters, at least one of these threshold values must be exceeded per transfer, so that the transfer is taken into account. Thus, the elimination can be limited to transfers that substantially change the consolidated balance sheet.
Change system parameters in customizing
1. The following selected FS items are
needed for proper processing of the transaction types and the FS items:
- BWA (*)
TTy reversal of retirements APC
- BWB (*)
TTy depreciation/amortization
- BWC (*)
TTy transfer VA
- BWU (*)
TTy transfer APC
- BWW (*)
TTy reversal of retirements VA
- BWZ (*)
TTy reversal of acquisitions APC
- AFA (*)
FS item for depreciation/amortization
- ERL (D)
FS item for expense
- ERL (C)
FS item for revenue
To maintain the selected items choose the step 
Maintain selected items in chapter -> Consolidation ->
Elimination of IC Profit/Loss -> Transferred Assets of the Implementation
Guide.