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Parallel Currencies in Asset accounting

Version 3

created by Sneha Jain on Apr 20, 2012 5:16 PM, last modified by Sneha Jain on Apr 24, 2012 7:50 AM

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In Financial accounting apart from the loacal currency we can define two additional currencies for the company code.
The main purpose of using parallel currencies is to maintain the G/L accounts in different currencies. The companies
which have subsidiaries in different countries use parallel currencies to update the foreign business transactions in
different foreign currencies (parallel currencies).
We can use various currency types for the parallel currencies such as Group currency, Global Company currency, Index
based currency and Hard currency.
The purpose of using parallel currencies in Asset accounting is to maintain the fixed asset values such as APC and
Depreciation in different currencies.

1. Define Currencies for leading ledger: (OB22)

SPRO-->Financial Accounting (NEW)-->Financial Accounting Global settings--> Ledgers--> Ledger-->Define currencies for
Leading ledger

Here you define the additional currencies that you want to use

2. Define Depreciation Areas:

SPRO-->Financial Accounting (NEW)-->Asset accounting-->Valuation-->Depreciation Areas-->Define Depreciation Areas

Depreciation areas 1, 2 and 3 i.e. Book Depreciation, Special tax Depreciation and Derived Depreciation are
already defined in the system. Just select 0, Area do not post for Depreciation area 2
3. Define Depreciation Areas for Parallel Currencies:

We should always copy the depreciation areas from the real depreciation area when creating depreciation

areas for the parallel currencies. Since, we are using two parallel currencies i.e EUR and USD. We should

define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we should define
1 depreciation area for USD and 1 depreciation area for EUR for both Book Depreciation area and Special
tax depreciation area. Therefore we will have 4 depreciation areas for parallel currencies 2 for Book
depreciation and 2 for Special tax depreciation.

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Depreciation areas for parallel currency USD for Book Depreciation

In the same way create one more depreciation area for parallel currency EUR for Book Depreciation

Depreciation areas for parallel currency USD for Special Tax Depreciation

In the same way create one more depreciation area for parallel currency EUR for Special Tax depreciation

4. Specify Area Type: (OADC)

Here you specify the purpose of the depreciation area i.e. for what type of valuation you want to use the
depreciation area.

5. Specify Transfer of APC values: (OABC)

Here we specify how the APC values will be transferred to the depreciation areas. For example if you want
to show the APC values of a depreciation in foreign currency then you should use the the local currency

values as basis, that means for depreciation areas in foreign currency you should use book depreciation as
the base. We should also mark the depreciation areas in foreign currency as identical so that the values
from the transferring depreciaiton area are transferred without any changes.

6. Specify Transfer of Depreciation Terms: (OABD)

Here we specify the transfer rules for the transfer of deprecation terms to the depreciation areas.

7. Define Depreciation Areas for Foreign Currency: (OAYH)

SPRO-->Financial Accounting (NEW)-->Asset accounting-->Currencies-->Define Depreciation areas for Foreign Currencies

Here we assign foreign currencies for depreciation areas in which we want to them to be valuated.

8. Determine Depreciation Areas in the Asset Class: (OAYZ)

9. Create an Asset: (AS01)

10. Post Asset Transaction: (F-90)

Post a Transaction for the asset.

11. Asset Explorer: (AW01N)

25862 Views
Products: sap_erp_financials Topics: enterprise_resource_planning Tags: asset_accounting, assets, parallel, ledgers,
currencies

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