Venkat Subrahmanyam

Ledger Approach in New Asset Accounting

Prerequisites

You have made the following settings in Customizing:

You have defined your ledgers and ledger groups. A ledger
group represents the ledgers of only one accounting principle.
For each parallel accounting principle, you have created a real
(posting) depreciation area and assigned it to the ledger group
that represents the given accounting principle. You need
further depreciation areas for parallel accounting (for example,
for foreign currencies), for instance if you manage parallel
currencies in the assigned non-leading ledger. You also have to
assign a ledger group to all further depreciation areas.
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Features
Each real depreciation area for a valuation (using accounting
principle) manages the complete values of its own accounting
principle, so that the values of Asset Accounting and General
Ledger Accounting can be reconciled.
For an additional (parallel) depreciation area, you do not have
to create its own account set. Instead you use the account set of
the leading depreciation area.
With the ledger approach, therefore, you do not have to create
any new accounts in the chart of accounts or in the company
code. You also do not have to create a new financial statement
version.
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Characteristics and Use of New Asset Accounting

You can record the leading valuation of Asset Accounting in
any depreciation area of new Asset Accounting. It is no longer
necessary to use depreciation area 01 for this. The system now
posts both the actual values of the leading valuation and the
values of parallel valuation in real time. This means the
posting of delta values has been replaced; as a result, the delta
depreciation areas are no longer required.
New Asset Accounting makes it possible to post in real time
in all valuations (that is, for all accounting principles). You can
track the postings of all valuations, without having to take into
account the postings of the leading valuation, as was partly the
case in classic Asset Accounting.

Characteristics and Use of New Asset Accounting

The following details the advantages you gain by using new
Asset Accounting:
Choice of using the ledger approach or accounts approach
Real time postings in all valuations Leading valuation made
more flexible
Parallel documents for each valuation that post correct values
from the beginning
Abolition of delta areas for parallel valuation
Simplification of your chart of depreciation
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Characteristics and Use of New Asset Accounting

Valuation-specific postings by means of restriction to
accounting principles or depreciation areas; the restriction of
transaction types to depreciation areas no longer applies.
Different fiscal year variants for each valuation (restriction:
start date and end date of the fiscal year variant must be the
same.)
Straightforward assignment of accounts for each valuation
within an asset class
Simplified management of goods that are to be capitalized in
accordance with one set of accounting principles, but are to be
posted to expense in accordance with a different set
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Existing

master data and transaction data is not changed

by your activating new Asset Accounting in SAP
Accounting powered by SAP HANA . However, you might
possibly have to migrate and adjust your Customizing data.
This depends on your situation before the migration.
Existing Customizing settings from classic Asset
Accounting or from new Asset Accounting are transferred;
this means that to the extent you have already been
working with classic or new Asset Accounting, you do not
have to make all the Customizing settings again.
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You

have to migrate, to some extent check, change and

add to your Customizing data in these two cases: you are
migrating from classic General Ledger Accounting with
classic Asset Accounting, or from new General Ledger
Accounting with classic Asset Accounting.
If you are migrating from new General Ledger Accounting
with active new Asset Accounting - that is, you activated
business function FIN_AA_PARALLEL with new Asset
Accounting in SAP enhancement package 7 for SAP ERP
6.0 SP02 - then you have to perform a smaller part of the
migration of Customizing data.
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It

may no longer be possible to process work lists that

have been created before the changeover to the new Asset
Accounting. This involves work lists that create transaction
data (however, not master data changes), such as work lists
for retirement without revenue, retirement with revenue,
intercompany asset transfer, and impairment posting.
You should therefore either process these work lists before
you activate the Customizing switch, or create them again
once you have activated new Asset Accounting in SAP
Accounting powered by SAP HANA.
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Prerequisites for the Business Function

For you to be able to use new Asset Accounting, the following
criteria must be met:
You have set up and activated the application component General
Ledger Accounting (FI-GL) (New).To handle parallel accounting
principles, use the ledger approach.
You have activated the Financials Extension (EA-FIN) business
function.
You have configured the classic Asset Accounting (FI-AA)
application component.
From the Financials Extension (EA-FIN), you use the new
depreciation calculation with the depreciation calculation program
(DCP).

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Prerequisites for the Business Function

If you have not previously used classic Asset Accounting,
you need to make all of the necessary Customizing settings
for new Asset Accounting.
You need to activate the business function FI-AA, Parallel
Valuation (FIN_AA_PARALLEL_VAL) for new Asset
Accounting.

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Prerequisites for the migration to new Asset

Accounting.
If you want to use new Asset Accounting, you are not
allowed to use any of the following components,
business functions, or functions:
Joint Venture Accounting (JVA)
You cannot activate new Asset Accounting in company
codes in which JVA is active, and the reverse is also
true.
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Prerequisites for the migration to new Asset

Accounting
The

business function JVA, Integration with New General

Ledger Accounting (JVA_GL_INTEGRATION) is also not
compatible with new Asset Accounting.
From the Financials Extension (EA-FIN) : Lease Accounting
Engine (LAE).
The LAE controls postings for the lessor scenario; this
scenario consists of the components CRM Leasing (CRMLAM) and Leasing Accounting (FILA).
Real Estate (RE) , that is, classic Real Estate Management
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Prerequisites for the migration to new Asset

Accounting.
If you are already using classic Asset Accounting, the
following additional prerequisites also apply:
Make

sure that the periodic asset postings (with program

RAPERB2000) are completed. Also ensure that there are no
update terminations from direct postings in the system.
Perform a complete period-end closing before the migration.
Post the depreciation (using the RAPOST2000 program), and
reconcile your asset accounting subsidiary ledger with the
general ledger (using the RAABST02 program).
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Prerequisites for the migration to new Asset

Accounting.
For the leading valuation of the ledger approach and
accounts approach and for parallel valuations of the
ledger approach, the following is valid: The parallel
currencies in the leading ledger in General Ledger
Accounting and in the depreciation areas in Asset
Accounting must be the same.

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Prerequisites for the migration to new Asset

Accounting.
If you have previously been using parallel currencies in
General Ledger Accounting, but you have not
implemented the corresponding parallel currency areas in
Asset Accounting for all depreciation areas, you must first
implement these depreciation areas before you install the
SAP Simple Finance add-on.

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Time of Migration to New Asset Accounting

You can migrate to new Asset Accounting in SAP
Accounting powered by SAP HANA at any point in time.
The prerequisite is, however, that you have completed all
periodic and current posting processes that involve Asset
Accounting.
You must not make any postings during the changeover.
You should reconcile your asset accounting subsidiary
ledger with the general ledger. SAP recommends that you
carry out the changeover after period closing has been
fully completed.

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If you also migrate from classic General Ledger

Accounting to new General Ledger Accounting as part
of the implementation of SAP Accounting powered by
SAP HANA , then, at the time of the changeover, you
have to observe the rules for the migration to new
General Ledger Accounting.

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Transactions with Integrated Postings

As of SAP Accounting powered by SAP HANA, you
can use parallel valuation for integrated postings in
new Asset Accounting.
Asset acquisition and Investment support measures
A business transaction posted using integration (such as
an asset purchase from a vendor or an asset sale to a
customer) is split by the system into an operational part
and a valuating part.
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Transactions with Integrated Postings

An accounting-principle-independent document is
created in the operational part. An accountingprinciple-specific document is created for the valuating
part for each valuation that is managed for the asset.
Asset balances are only updated to specific accounting
principles.

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Transactions with Integrated Postings

Example
You create financial statements in accordance with
both IFRS and a local accounting principle. In new
General Ledger Accounting, you have set up the
appropriate accounting principles (accounting principle
IFRS and accounting principle LGAAP) and assigned
ledger groups. In new Asset Accounting, you have set
up the appropriate depreciation areas.
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Transactions with Integrated Postings

Example
For technical reasons, you also have to create ledger
groups in the accounts approach and assign them to
accounting principles. Since no general ledgers are
required for representing parallel valuation and none
are configured, these ledger groups contain only the
ledger 0L.

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Transactions with Integrated Postings

Example An asset acquisition is created in an
integrated posting.

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Transactions with Integrated Postings

Document creation and posting:
The system generates the following three documents:

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Transactions with Integrated Postings

Document creation and posting:
The system generates the following three documents:

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With

the accounts approach for parallel accounting,

the asset documents for integrated asset acquisition or
retirement are updated in the local currency, but not in
the foreign currency. Instead the foreign currency
amounts remain zero.

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