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.
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)