Changeover Procedure in Asset Accounting (SAP Library - European Monetary Union: Euro (CA-EUR))

Changeover Procedure in Asset Accounting

Use

The changeover of FI-AA data is almost completely automatic when you use the R/3 changeover package. This process is described below.

Features

The changeover of FI-AA data follows these steps:

In the preprocessing phase, the system carries out a depreciation recalculation for all affected assets. It checks the reconciliation of the APC balance sheet accounts with the FI-AA balances (before the changeover).

After the preprocessing program has run, you have to manually correct any depreciation errors that were found. Start program RAT08401 and process its error log. If there are reconciliation problems, you have to analyze and correct them using the appropriate FI-AA reports (in FI-AA Tools ® Problem analysis).

In the changeover phase, the system translates all asset values and the amount specifications in Customizing to euros. The system then first reconciles the translated values internally within FI-AA.

In the postprocessing phase, the system reconciles the FI-AA subsidiary ledger balances with the balances of the G/L accounts.

Do not make any FI-AA postings during the postprocessing phase.

After the postprocessing programs have run, you have to process their error logs. Analyze the error messages and follow the instructions there for correcting the errors.

If errors occurred on assets for which you posted retirements, transfers, credit memos, or write-ups, you have to reverse the last of these transactions and enter it again. This applies particularly to settlements from assets under construction to completed assets.

As part of the changeover, the system corrects inconsistencies between asset line items and the General Ledger. These corrections are made for totals on the G/L account level. Reversing a transaction, therefore, could mean that a new reconciliation is required.

Documentation of the Changeover

In order to document that the changeover is correct, you should run the following asset reports before and after the changeover:

For asset balances: RABEST01

For depreciation and value adjustment balances: RAAKTB01

For depreciation posted in the changeover year: RAGITT01 (using the Posted depreciation selection option)

Choose the end of the fiscal year as the report date. For report RAGITT01 specify that the report should output posted depreciation values (not planned depreciation).

Changeover of Amount Specifications

There are certain amount specifications you make in Customizing for Asset Accounting, such as the maximum amount for low value assets, investment support amounts, amounts for depreciation changeover, scrap values, and so on. The system automatically converts these amounts to euros. However, after the changeover, you may have to manually adjust these amount specifications in order to comply with new government regulations that are in euros (Euro Customizing: Cleanup).

Rounding

The problems associated with rounding during the euro changeover are especially complex in the Asset Accounting (FI-AA), since the many different value checks for depreciation calculation cannot be allowed to be violated even after the changeover. The calculation of proportional value adjustments to a given period for asset retirement is also extremely complex. This is one of the reasons that you should keep the number of postings for the new year between the fiscal year change and the euro changeover to an absolute minimum. If you do make postings, then they should be limited to acquisition postings only. (For more information, see Prevention of Errors).

During the changeover, the system rounds to the nearest whole number. The specifications you make for euro rounding in FI-AA Customizing do not take effect in Asset Accounting until after the euro changeover. Logically, these specifications then affect only those values translated to euros in the current year and for future years.

When you compare planned values in the asset list or the asset history sheet before and after the euro changeover, the planned depreciation in the current year cannot be explained simply by the currency translation and possible rounding differences. The reason for this is that the system carries out a recalculation of depreciation after the changeover. As the result of the translation of the base values, it is possible that the system might have made noticeable adjustments to planned depreciation.

Rounding During Depreciation Calculation

Amounts Before the Changeover

Value	Amount
APC	10,000 DM
Straight-line depreciation 10%	1000 DM
Net book value	9000 DM

After the conversion, the values are as follows:

Amounts after the Changeover

Value	Amount
APC	5143.23 euros
Straight-line depreciation 10%	514.23 euros Due to rounding of the net book value!
Net book value	4629 euro

The translated planned depreciation amount (10% depreciation on APC of 5143.23 euro) should normally have been 514.32 euros. However, the indicator for rounding Rem. book value at year end is set in FI-AA-Customizing, which causes the depreciation value to be corrected by 9 cents.

Memo Values

The system converts memo values. However, it cannot guarantee that the memo value of a fixed asset will be a specific amount after the changeover (for example, that it will be exactly 1 euro).

For more information on memo values in FI-AA, see the Implementation Guide (IMG) for Euro Customizing.

Memo Values and Rounding

If you have set the indicator for rounding Rem. book value at year end in FI-AA Customizing, the system rounds any memo values that are less than one euro to zero at the end of the fiscal year. These memo values are thereby lost.

If the memo value is not switched off during the euro changeover, you may be left with a memo value, for example, of 0.51 euro after the conversion. If the indicator for rounding Rem. book value at year end is set, then the system rounds the minimum value and the asset is written off to zero.

For more information on rounding options in FI-AA, see the Implementation Guide (IMG) for Asset Accounting. Choose Valuation ® Amount Specifications ® Specify Rounding of Net Book Value and/or Depreciation