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Function documentationInvestment Support Managed on the Assets Side Locate this document in the navigation structure

 

You can handle investment support as a reduction of asset acquisition costs on the assets side of the balance sheet, as long as you are not required to display claimed investment support separately in the balance sheet. When you use this method, the acquisition costs of the asset are reduced by the support amount. The reduced acquisition costs serve as the basis for depreciation.

Features

If you are managing only one investment support measure for each asset, you do not need a separate depreciation area. The investment support has to be managed in the depreciation area that posts automatically to the general ledger This area provides Financial Accounting with the necessary posting information.

If you manage more than one investment support measure for a fixed asset and you want each measure to be posted separately in Financial Accounting, you need special depreciation areas. You manage the additional investment support measures in these depreciation areas and post the values from these areas to Financial Accounting. You specify the same depreciation terms for these areas as exist in the area that posts automatically to the general ledger.

Accounts

You need the following accounts for posting investment support on the assets side:

  • APC balance sheet account, for the posting of the allocation of the investment support (corresponds to the special reserves balance sheet account for showing investment support on the liabilities side of the balance sheet)

  • A clearing account for the allocation of investment support

Postings

The following transactions are supported by the system:

  • Claiming of support

  • Retirement of support along with acquisition value

    Caution Caution

    The system cannot offer the same automatic assistance for certain transactions when this method is used, as compared to using the method of posting investment support on the liabilities side, since the investment support directly reduces the acquisition value and the depreciation is calculated based on this reduced amount. Automatic support from the system is not available for retirements during the required period of retention, and for the extraordinary write-off of the investment support resulting from such retirements. The system does not automatically post the repayment of investment support in these instances. You have to post the repayment of the investment support amount manually in Financial Accounting. In addition, the system does not issue a warning when the asset retirement takes place during the required period of retention.

    End of the caution.