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Author's profile photo Ram Kumar Swami

PARALLEL LEDGERS IN ASSET ACCOUNTING

We can use parallel ledgers in asset accounting for different valuations as per different accounting principles. In our scenario, company code AIPL (Hindustan Mills Ltd) follows two accounting principles that is US GAAP and Indian GAAP. In General Ledger accounting we have created ledgers for each GAAP i.e. leading ledger ‘0L’ for US GAAP and Non-leading ledger ‘X1’ for Indian GAAP. In asset accounting, we use master area i.e. area 01 for leading ledger valuation. For valuation of non-leading ledger, we create one separate real depreciation area and one derived depreciation area for each accounting principle so that the values of Asset Accounting and General Ledger Accounting can be reconciled. The derived depreciation area triggers adjustment postings to keep the general ledger and subsidiary ledgers in sync. We have already created ledger group for each ledger in General Ledger accounting, the same ledger group will be assigned in depreciation area of each accounting principle in asset accounting. The following depreciation areas will be created:

 

Depr Area

Description

Posting in GL

1

Book depreciation area (Leading Ledger)

Area posts in Real time

30

Valuation area for Indian GAAP (Non-Leading ledger)

Area post depr only

55

Delta Depreciation Area

Area Posts Only APC Directly

1. Define Depreciation Areas

 

Define depreciation area 1 (book depreciation area ) and 30 (depreciation area for Indian GAAP). For depreciation area 1, system posts value in real time whereas for depreciation area 30, system posts only depreciation value. Use following menu path or transaction code:

 

SAP Menu

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Valuation -> Depreciation Area-> Define Depreciation Area

Transaction Code

OADB

 

Using above menu path or T.code we will assign the ledger groups in the respective depreciation area i.e. ledger group ‘0L’ in area 1 and ledger ‘X1’ in area 30:

 

/wp-content/uploads/2014/04/screenshot_434206.png

In the above step, we have specified ledger group ‘0L’ as target ledger group for master depreciation area 01 that means asset values of depreciation area 01 will be updated in leading ledger ‘0L’ in General Ledger Accounting. The ledger group which we assign to master area must contain leading ledger. In the same way we will specify ledger group ‘X1’ for depreciation area 30 which we use for parallel valuation for Indian GAAP. The ledger group of the area for parallel valuation is not allowed to contain the leading ledger. Asset values in area 30 will be posted to Non-Leading ledger X1, as shown in the below screen:

 

/wp-content/uploads/2014/04/s2_434249.png

Posting control in depreciation area 30 should be set as “Area posts Depreciation Only”.

 

We do not have to set up a separate set of GL accounts for this new depreciation areas 30. Instead we use the same set of GL accounts of the master depreciation area 01. In this scenario, we do not have to create any new GL accounts in the chart of accounts or in the company code. We also do not have to create a new financial statement version for different parallel valuations and Ledgers. Depreciation area 30 uses the GL account set of depreciation area 01. Ledger group ‘X1’ is not allowed to contain the leading ledger when we specify X1 as target ledger group in depreciation area.

 

To enable this setting, we have to select 1 in the field “Different Depreciation Area” in depreciation area 30 as shown in the above picture.

 

2. Setup areas for parallel valuation

 

Using this wizard, system automatically creates a derived depreciation area that is used for updating the APC differences in the ledger group of parallel valuation. Posting control in the derived depreciation area is set as “Area posts only APC directly” while the real depreciation area for parallel valuation posts only depreciation.

 

Real depreciation area 30 for parallel valuation use the GL accounts of the master depreciation area 01 for posting values. If the accounts of the master depreciation area are entered as cost elements, then this also applies to parallel valuation, although there is no update to CO in this general ledger.

 

SAP Menu

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Valuation -> Depreciation Area-> Set Up Areas for Parallel Valuation

Transaction Code

OADB_WZ

 

Follow the steps below:

 

/wp-content/uploads/2014/04/s3_434250.png

Click on “Continue” button.

 

/wp-content/uploads/2014/04/s4_434251.png

Enter the real depreciation area 30 for parallel valuation and target ledger group X1 and click on “Continue” button.

S6.png

Since we have not created any derived or delta depreciation area in chart of depreciation ALTM for company code AIPL, here we will select option “Create New Depreciation Area” so that system  automatically creates the delta depreciation area for parallel valuation. System shows the difference between local and parallel valuation in this area and posts these differences in the ledger group for parallel valuation i.e. X1.

 

Click on “Continue” button.

/wp-content/uploads/2014/04/s7_434334.png

Click on “Continue” button.

 

/wp-content/uploads/2014/04/10_434335.png

Click on “Continue” button and complete the setting.

 

Now see the depreciation area overview (Transaction code OADB)

 

/wp-content/uploads/2014/04/11_434343.png

 

Notice that ledger group X1 has assigned in both depreciation area 30, which is for parallel valuation and depreciation area 55 which is delta depreciation area for area 30 to post the difference between area 1 and 30.

 

3. Determine Depreciation Areas in the Asset Class

 

In this IMG activity, we determine the depreciation terms that are used in asset classes.

 

SAP Menu

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Valuation -> Determine Depreciation Areas in the Asset Class

Transaction Code

OAYZ

 

/wp-content/uploads/2014/04/12_434344.png

Select asset class 3000 ‘furniture and fittings’ and double click on “Depreciation areas” in dialog structure:

 

/wp-content/uploads/2014/04/15_434352.png

Deselect the check box ‘deactivate’ for depreciation area 30 so that all the depreciation areas will appear when we create an asset master under this asset class.

 

/wp-content/uploads/2014/04/20_434353.png

We have specified useful life 2 years for area 01 and 4 years for area 30.

 

4. Integration with the General Ledger

 

In this IMG activity, we specify the balance sheet accounts and the depreciation accounts for master depreciation area 01 and parallel depreciation area 30. For derived depreciation area 55, account assignment is not required.

 

SAP Menu

SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Integration with the General Ledger -> Assign G/L Accounts

Transaction Code

AO90

 

/wp-content/uploads/2014/04/30_434364.png

 

Assign balance sheet GL accounts to depreciation area 1 as follows:

 

/wp-content/uploads/2014/04/40_434365.png

Similarly assign balance sheet GL accounts to depreciation area 30 and then assign depreciation GL accounts for depreciation area 1 and 30 as follows:

 

/wp-content/uploads/2014/04/50_434372.png

Depreciation area 1:

 

/wp-content/uploads/2014/04/70_434373.png

Depreciation area 30:

 

/wp-content/uploads/2014/04/90_434374.png

 

5. Specify Document Type for Periodic Posting of Asset Values

 

In this IMG activity, we specify a default document type for periodic posting of asset balance sheet values (values other than depreciation). This document type is used only by the periodic posting program, RAPERB2000. We have created a separate document type ‘SX’ for this purpose, the same will assign to company code AIPL in this step as follows:

 

/wp-content/uploads/2014/04/1_434606.png

We have completed the necessary configuration steps for parallel ledgers in asset accounting. Now we will test the same settings for the business scenario in the following steps:

 

6. Scenario for parallel ledgers

 

Create an asset master for ‘Furniture’ with straight-line depreciation method with the following parameter controls:

 

Depreciation area

Useful life

Depreciation rate per year

01 (For US GAAP)

2 Years

50%

30 (Indian GAAP)

4 Years

25%

 

Depreciation calculation for asset value 2, 40,000/- for each depreciation area is as under:

 

Depreciation area

Total Posting periods

Depr amount per period

01 (For US GAAP)

2 x 12 = 24

2,40,000/24 = 10,000

30 (Indian GAAP)

4 x 12 = 48

2,40,000/48 = 5,000

 

Now, do the asset acquisition for above asset and then run depreciation for one period and finally retirement of the asset and see the effect in parallel ledgers.

 

7. Create asset master

Create an asset master for furniture.

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Asset -> Asset -> Create -> Asset

Transaction Code

AS01

 

/wp-content/uploads/2014/04/2_434607.png

 

Click on “Deprec.Area” tab page and give useful life and depreciatoin key are 1 and 30 as follows:

/wp-content/uploads/2014/04/3_434608.png

Now save the data, system has created asset master number 300011 for furniture.

 

8. Asset acquisition

 

Do asset purchase on date 01.03.2013 for amount 240,000 using following menu path or transaction code:

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Asset -> Posting -> Acquisition -> External Acquisition -> With Vendor

Transaction Code

F-90

 

/wp-content/uploads/2014/04/4_434423.png

Asset purchase document has posted as shown in above screen shot.

 

9. Display asset value in asset explorer

 

Use the following menu path or transaction code to display the asset value for all depreciation areas for the asset posted in earlier step:

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Asset -> Asset -> Asset Explorer

Transaction Code

AW01N

 

U1.png

 

In the above screenshot, we can see the value in depreciation area 01 (Leading ledger valuation in local currency).

Now see the comparison value of depreciation area 30 as follows:

 

/wp-content/uploads/2014/04/16_434447.png

 

In the above picture, for depreciation area 30 (Non-Leading ledger valuation in local currency), system shows comparisons for four years (2013, 2014, 2015 & 2016) because we have given useful life four years in asset master 300011 for this depreciation area.

Note: System also shows value 10, 000 in fifth year i.e. 2017 this is because we have done asset acquisition in third period of the current year 2013 so in current year system could calculate depreciation only for 10 months and for remaining 2 periods, depreciation will be posted in year 2017 (5, 000 x 2 = 10,000).

Now display the comparison value of delta depreciation area 55. Here we can see that system shows the difference value between area 01 and 30 under depreciation area 55.

Example: For the year 2013, ordinary depreciation is 1, 00,000 in depreciation area 01 and for area 30 ordinary depreciation is 50, 000 in the same year so difference 50,000 (area 01minus area30) has shown under delta area 55. See the below picture:

 

/wp-content/uploads/2014/04/19_434448.png

10. Display Asset APC general ledger line items

 

The asset acquisition posting which is made in the leading ledger is automatically posted into the non-leading ledger also. Display G/L line items for asset ‘Furniture’ APC account for ledger 01 and 30 and notice that system has updated the same value in both the ledgers.

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> General Ledger -> Account -> Display/Change Items (New)

Transaction Code

FAGLL03

 

Choose ledger ‘X1’ by clicking on “Choose Ledger” button.

 

/wp-content/uploads/2014/04/1_434606.png

 

Execute and see the balance:

 

/wp-content/uploads/2014/04/2_434607.png

 

Now choose ledger ‘0L’ by clicking on “Choose Ledger” button and execute:

 

/wp-content/uploads/2014/04/4_434423.png

 

 

11. Run periodic asset depreciation

 

 

When we run depreciation program using below menu path or transaction code, system posts separate documents in each ledgers i.e. ledger ‘0L’ and ledger ‘X1’ with their respective depreciation amount according to depreciation key assigned in asset master data for each depreciation area.

 

 

First execute test run and then update run as follows:

 

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Assets -> Periodic processing -> Depreciation run -> Execute

Transaction Code

AFAB

 

/wp-content/uploads/2014/04/6_434461.png

Execute:

 

/wp-content/uploads/2014/04/8_434465.png

 

Notice that system has created two separate depreciation documents with different values for each depreciation area i.e. area 1 and area 30. Since area 1 is assigned to ledger ‘0L’ and area 30 is assigned to ledger ‘X1’ in customizing so system will post separate depreciation values to each ledger.

 

 

12.      Display depreciation GL line items

 

 

 

Display “book depreciation G/L account” line items for the each ledger using following menu path or transaction code:

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> General Ledger -> Account -> Display/Change Items (New)

Transaction Code

FAGLL03

 

Display balance for Leading Ledger – 0L

/wp-content/uploads/2014/04/7_434467.png

 

Display balance for Non-Leading Ledger –X1

 

/wp-content/uploads/2014/04/9_434474.png

Notice that system has posted depreciation value 10,000 for ledger “0L” and 5,000 for ledger “X1”

 

Thus depreciation amount of 10, 000 under US GAAP is posted in leading ledger ‘0L’ and the depreciation amount of 5, 000 under Indian GAAP is posted in non-leading ledger ‘X1’

 

13.      Asset retirement postings

 

 

We will retire the asset through sale for a value of Rs.2, 33,000 so that in US GAAP depreciation area, there will be a gain of Rs.3, 000. On the other hand, there will be a loss of Rs. 2, 000 in the Indian GAAP. The following are the accounting entries which should be updated in each ledger:

 

 

Asset Retirement Posting – 0L (Area 01)

Furniture & Fixture (APC A/c)

2,40,000.00

Cr

Clearing Asset disposal

2,33,000.00

Dr

Accm Depr-Furniture & Fixture

10,000.00

Dr

Profit on asset Sale

3,000.00

Cr

Asset Retirement Posting – X1 (Area30)

Furniture & Fixture (APC A/c)

2,40,000.00

Cr

Clearing Asset disposal

2,33,000.00

Dr

Accm Depr-Furniture & Fixture

5,000.00

Dr

Loss on asset Sale

2,000.00

Dr

 

 

But when we do retirement postings in SAP, system does not post the separate values to each ledger i.e. 0L and X1 as explained in the above example rather the entries made in the leading ledger is duplicated in the non-leading ledger. In this case, system will pass the following entry in area 30 (Ledger X1) which is the same accounting entry updated in area 01 (Ledger 0L):

 

 

Asset Retirement Posting – X1 (Area 30)

Furniture & Fixture (APC A/c)

2,40,000.00

Cr

Clearing Asset disposal

2,33,000.00

Dr

Accm Depr-Furniture & Fixture

10,000.00

Dr

Profit on asset Sale

3,000.00

Cr

 

 

Due to this posting in Indian GAAP area, we can see the following mismatches in Indian GAAP ledger X1:

 

 

  1. The reverse of accumulated depreciation is more by 5,000 because 10,000 has been reversed instead of 5,000
  2. There is no posting for actual loss of 2,000 in this ledger

3. Instead a gain of 3,000 has been posted.

 

 

To correct all these mismatches, the system automatically posts the entries necessary to reflect the correct position in Indian GAAP (Ledger X1) when we run the periodic asset posting program. This adjustment is done using the Delta depreciation area.

 

 

The following entry will be passed for adjustment using periodic program run:

 

 

Asset Adjustment Posting – X1 (Area30)

Accm Depr-Furniture & Fixture

5,000.00

Cr

Profit on asset Sale

3,000.00

Dr

Loss on asset Sale

2,000.00

Dr

 

 

Lets see replicate the above scenario in SAP using the following menu path or transaction code to do asset retirement posting:

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Asset -> Posting -> Retirement -> Asset Sale Without Customer

Transaction Code

ABAON

/wp-content/uploads/2014/04/11_434343.png

 

Click on “Simulate” button.

 

/wp-content/uploads/2014/04/13_434495.png

Post the document:

 

/wp-content/uploads/2014/04/17_434496.png

 

Note: Line item 2 is for accumulated depreciation account in the above screenshot.

 

 

Display asset values in asset explorer for each depreciation area after retirement as shown below:

Depreciation Area 01:

/wp-content/uploads/2014/04/19_434448.png

 

Display Depreciation Area 30:

 

/wp-content/uploads/2014/04/20_434353.png

 

 

Display delta depreciation area 55:

 

/wp-content/uploads/2014/04/44_434499.png

 

 

Now display balance for G/L account 30000004 (Profits on asset disposal / sale) after doing asset retirement and notice that system has posted the same value to both ledger i.e. 0l and X1:

 

Transaction code: FAGLL03

/wp-content/uploads/2014/04/10_434335.png

 

Display balance for ledger X1:

/wp-content/uploads/2014/04/35_434598.png

In the above two screenshots, we can see that system has updated same value in both ledgers.

 

Now we need to correct these values and post the adjustment entry in non-leading ledgers using asset periodic posting as explained earlier in the example, use the following menu path or transaction code:

 

14. Periodic posting from fixed assets

 

We use this step to post the adjustment entries to specific ledger since we cannot post directly to reconciliation G/L. As per the retirement adjustment posting, we need to post to accumulated depreciation G/L account also which is reconciliation account.

 

SAP Menu

SAP Easy Access-> Accounting -> Financial Accounting -> Fixed Asset -> Periodic processing ->  APC Values Posting

Transaction Code

ASKB

 

/wp-content/uploads/2014/04/36_434599.png

 

Give the asset number 300011 in initial screen for which we want to post the adjustment entry.

First execute in test mode and then execute update run as follows:

 

/wp-content/uploads/2014/04/1_434606.png

 

In the above screenshot, we can see that system posts this adjustment document to ledger group X1 only. When we execute the update run, system creates the following document as per accounting entry explained in the example:

 

/wp-content/uploads/2014/04/2_434607.png

 

Note: Line item 3 is for accumulated depreciation account in the above screenshot.

 

Now after posting this adjustment document through periodic run, display balance for ledger account 30000004 (Profit on disposal / sale of fixed assets) for Ledger – X1 and notice that system has posted one reverse entry for the amount 3,000 which was posted during asset retirement:

 

/wp-content/uploads/2014/04/3_434608.png

 

This way system nullifies the balance of “Profit on sale” account for ledger X1 and posts to “Loss on sale” account, see the below picture:

 

/wp-content/uploads/2014/04/5_434609.png

Finally, after completing the above steps, we will find the GL balances for each ledger as per the accounting entries given in the example as mentioned below:

 

 

Asset Retirement Posting – 0L (Area 01)
Furniture & Fixture (APC A/c)

2,40,000.00

Cr
Clearing Asset disposal

2,33,000.00

Dr
Accm Depr-Furniture & Fixture

10,000.00

Dr
Profit on asset Sale

3,000.00

Cr

 

Asset Retirement Posting – X1 (Area30)
Furniture & Fixture (APC A/c)

2,40,000.00

Cr
Clearing Asset disposal

2,33,000.00

Dr
Accm Depr-Furniture & Fixture

5,000.00

Dr
Loss on asset Sale

2,000.00

Dr

 

 

=====================================================================================

 

Thanks for your valuable feedback, advice and suggestions.

Please correct me if I have missed out something

 

Best Regards,

Ram Kumar Swami

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      51 Comments
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      Author's profile photo Sridhar Bolisetti
      Sridhar Bolisetti

      Hi Ram Kumar,

       

      Beautiful explanation with the real and practical example.  Thank you so much for sharing the knowledge.  I believe this is a wonderful piece of document on ASKB functionality in parallel ledger scenario.

       

      Regards,

      Sridhar

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Sridhar,

       

      Thanks for your cheerful words, appreciate your feedback.

       

      Best Regards,

      Ram

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      This is really helpful.

       

      I just tested the same (In my client's Quality environment), noticed that the ASKB entry posted automatically in Non-leading ledger along with the retirement document. Could you please let me know the setting for the same?

       

       

      BR,

      Ram

      Author's profile photo Mariks .
      Mariks .

      Thanks for the sharing valuable knowledge...

      Author's profile photo Jagadish K
      Jagadish K

      Ram Kumar Swami

       

       

      Thank you so much for info....................

      Author's profile photo Erwin Leitner
      Erwin Leitner

      Hello,

       

      Really GREAT.Thank you very much.

       

      all the best Erwin

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      Document is simple and easy to understand...

       

      Thanks for sharing this...

       

      Regards

      Karthikeyan G

      Author's profile photo Ajay Maheshwari SAP Trainer
      Ajay Maheshwari SAP Trainer

      Hi Ram

       

      Very nice document and well explained

       

      Just one change, which you can make to fulfill the  purpose of Parallel reporting using Parallel Ledger

       

      You need not assign separate GL accounts for Dep Area 30.. You can use same GL accounts as in Area 01

       

      Br. Ajay M

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Ajay,

       

      Thanks for your feedback and your time to read my ever first document in SCN forum.

      I agree with your statement that we do not need to assign separate GL accounts for Dep Area 30 and we can use the same set of GL accounts as in Area 01. I believe I have mentioned the same in this document somewhere in 3rd page as follows:

       

      "We do not have to set up a separate set of GL accounts for this new depreciation area 30. Instead we use the same set of GL accounts of the master depreciation area 01. Depreciation Area 30 uses the GL account set of Depreciation area 01."


      Regards,


      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      Great document!!

       

      One big question.  Since you use V3 for India then since AW01N will use the 0L then period 4 will display for 30 where it is actually period 1 for India.  I have read OSS Note 844029, so how does one deal with this issue I am reviewing AS91 where the takeover is 31.03.2014 and SAP still thinks it is calculating from January 2014 as US GAAP is "0L"?  Will the delta fix this issue if we do depreciation?

       

      I see in SCN that some people have gone for two assets in India, but I still feel the yearly declining balance calculation will still be wrong too.

       

      Regards

       

       

      Waza

       

      India Asset.png

      Author's profile photo Ajay Jawalkar
      Ajay Jawalkar

      Hi Ram,

       

      Beautifully explained.

       

      Thanks for sharing.

       

      Regards,

      Ajay

      Author's profile photo Former Member
      Former Member

      Excellent !!! very helpfull

      Author's profile photo Murali Babu Nallamothu
      Murali Babu Nallamothu

      Detailed explanation

      Thank you Ram for the document.

       

      Rgds

      MBN

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Murali,

       

      Good to hear from your side, thanks for your feedback.

       

      Regards,

      Ram

      Author's profile photo Lakshmi Sama
      Lakshmi Sama

      Hi Ram,

       

      Content is well exlained in the document and thanks for sharing your knowledge. Keep sharing.

       

      Regards,

      Lakshmi S

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Lakshmi,

       

      Thanks for your increasing words and your feedback.

       

      Regards,

      Ram

      Author's profile photo Former Member
      Former Member

      Hi Ram


      Thanks for the sharing valuable knowledge


      I tried to configure in the system it is working fine but when i am executing  FAGLL03 Tcode in which  Ledger is is gray mode only "0L" is allowed when i am try to change the Ledger to "B1" following error is coming 


      Ledger B1 may not be used

      Message no. FAGL_LEDGER_CUST101

       

      Diagnosis

       

      Ledger B1 is assigned to application FI-PSM. You can only use ledgers that are assigned to application FI-GLF.

       

      Can you please help to fix this error

       

      thanks in advance

       

      Trinath

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Trinath,

       

      Please go through the below thread, hope this may resolve your issue.

      There are some sap notes, please go through those notes mentioned in below thread.

       

      http://scn.sap.com/thread/3359226

       

      Thanks,

      Ram

      Author's profile photo rahul khanna
      rahul khanna

      Excellent document Ram. Appreciate your work here.

      Very useful explanations and some really good examples you have explained.

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Thanks Rahul for reading the document and your feedback. Happy to hear that document is understandable with examples.

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      Thanks for your document, it is well explained - even if I couldn't resolve my issue:

       

      In my particular problem, the ASKB is generating a journal entry exactly opposite to what I was expecting.

       

      Do you think that it could be the setting of the equivalent of your 55 Delta depreciation are?

      there is an aera where signage is mentioned

       

      Thank you again for sharing your lights, much appreciated

       

      KR - Loïc

      Author's profile photo Former Member
      Former Member

      Hello Ram,

       

      Great Job. But when i was trying to implement your described solution, i faced some problems ragarding target ledger. Im unable to create it, since there arent any IMG points.

      We use ECC 6.0 and normal standard GL.

      Maybe its because we didnt activate New GL?

       

      Regards

      Laurynas

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Laurynas,

       

      Thanks for your feedback.

      Yes you are right, since the New GL has not activated, you are not getting the IMG node for defining paralle ledger (Target Ledger).

       

      Thanks,

      Ram

      Author's profile photo Former Member
      Former Member

      HI Ram,

       

       

      Really a good document, the process is explained so well.. Thanks for sharing here..

       

      Regards

      Pragya

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Pragya,

       

      Thanks for reading the document and liking the same.

      Appreciate your feedback.

       

      Thanks,

      Ram

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      we have implimented the same scenario for one of my client one year back..

       

      they way you explained really great and easy to understand.

       

      In this process there is draback when we transfer the asset from one asset to another asset after depreciation posted (intercompany) with contra account which is also used for intercompany posting with open item management .

       

      Error will encounter only when we do ASKBN as open item managed GL are not permited in periodic posting

       

       

       

      Regards,

      Kumar

      Author's profile photo Ram Kumar Swami
      Ram Kumar Swami
      Blog Post Author

      Hi Ravi,

       

      Thanks for adding the relevant information here regarding the process.

      I haven't perform that step so could not mention the same in document.

       

       

      Thanks,

      Ram

      Author's profile photo Former Member
      Former Member

      Dear Ram,

       

      Nice explanation step by step.

       

      Keep sharing the knowledge.

       

      Regards,

      Satya

      Author's profile photo Former Member
      Former Member

      Excellent document

      Author's profile photo Former Member
      Former Member

      Good Efforts Keep it

       

      Regards

      Ramesh

      Author's profile photo Former Member
      Former Member

      Thanks for sharing, nice document.

       

      SKKS

      Author's profile photo Former Member
      Former Member

      Good document with detail explanation...

      Keep going!

      Author's profile photo Former Member
      Former Member

      Hi Ram,

      Thanks for this posting. I understand that now with Simple Finance on HANA or S/4 HANA it won't be necessary to run as a periodic process the Posting of APC values in the parallel ledger. Have you already some experience with that?

      One last question, I understood from your document that the leading Ledger must be allocate to the depreciation area 01, right? And the non-leading ledgers to the other parallel areas. What sounds still confusing to me is that usually the GL Leading Ledger should represent the Group GAAP, while the depreciation area 01 the "book value". ==> Question: Is then the depreciation area 01 "book value" the space where you should post values according the Group GAAP? I had understood that this group valuation was usually represented by the area 30 (?).

      Best

      Juan C.

      Author's profile photo Former Member
      Former Member

      Hi Juan,

       

      In fact from EHP7 there is a new solution for parallel valuation in asset accounting.More information in OSS note 1776828. It is not necessary to have HANA or Simple Finance to implement this solution, but I think to implement Simple Finance it is mandatory to implement New Asset Accounting.

       

      Regards,

       

      Arjun

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      I enjoyed reading and this helped me to go through Asset Accounting concepts which i have done 2 years back in one the live Projects in my first Company.

       

      Thank you once again for the time and effort that you have spent in bringing up this document.

       

      Regards,

      Ajay.

      Author's profile photo Srinivas Nooni
      Srinivas Nooni

      Hi,

       

      its really nice document and good efforts thanks for sharing your knowledge. i really like business examples with different scenarios. nice work.

       

      Regards

      Srinivas

      Author's profile photo Amar Lal Lohano
      Amar Lal Lohano

      Hi Ram Kumar,

       

      Really exceptional document with every step configured perfectly. Really appreciate your handwork. I was looking for working multiple ledgers and multiple depreciation areas. This document is the one what i needed the most.

       

      Thank you so much bro for such a wonderful job.

       

      Best Regards,

       

      Amar Lal Lohano

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      Beautiful document. Thanks for sharing your knowledge. What else i can do except giving 5 rating 🙂

       

      Regards

      Karthi

      Author's profile photo Former Member
      Former Member

      Hi Ram,

       

      I have posted a thread today about the same scenario you have outlined.

      I have a question. In this scenario how is it possible to have a different depreciation calculation rate for one asset? I am referring to Point No. 6 above.

      6. Scenario for parallel ledgers

       

      Create an asset master for ‘Furniture’ with straight-line depreciation method with the following parameter controls:

       

      Depreciation area

      Useful life

      Depreciation rate per year

      01 (For US GAAP)

      2 Years

      50%

      30 (Indian GAAP)

      4 Years

      25%

       

       

      Please advice.

       

      Thanks

      Srutha

      Author's profile photo Ahmed Almuwallad
      Ahmed Almuwallad

      Ram,

       

      Thank you so much for the document.

      Although it's been 2 years since I last read it but i coming back for refreshment

       

      Thanks alot

      Author's profile photo Arvind Pereira
      Arvind Pereira

      Hi Ram,

       

      Earlier path:

      SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting -> Valuation -> Depreciation Area-> Define Depreciation Area

       

       

      The path has now changed to:

      SPRO-> IMG -> Financial Accounting (New) -> Asset Accounting (New)-> General Valuation -> Depreciation Area-> Define Depreciation Area


      Thanks

      Arvind Leo Pereira

      Author's profile photo Gabriel Felipe Coleti
      Gabriel Felipe Coleti

      Dear Ram,

       

      Thank you for sharing. Nice document.

       

      Best regards,

       

      Gabriel Coleti

      Author's profile photo Ana Catarina Pires
      Ana Catarina Pires

      Hi Ram,
      This exposition is really helpful.

      Thank you,
      Best regards,
      Catarina

      Author's profile photo Former Member
      Former Member

      Hello Ram

      In My Case i am Useing Transaction code ABAVN - Scrapping where system automatically creates delta reversal document . At this stage GL Balance looks as desire . but when i run ASKBN its post again one document to Non Leading ledger which creates duplicate posting . So at the time of ABAVN i am having 2 posting in Non leading ledger with + and - but when i run ASKBN it again create with -

      Can you please advice

       

       

      Manoj J

      Author's profile photo Raul Martin Garay
      Raul Martin Garay

      Hello Ram

      Followed the explanation and applied the changes, We expect an issue, our new parallel depreciation area 02 , gets afected by any change applied to depreciation area 01.

      Warning message. Values for Ordinary deprec. have changed in dep. area. We have checked and confirmed that only has been change the usefull life in are 01 for that fixed asset. ¿How it is posible? ¿Should not be working independly?

      thanks

      Raul

      Author's profile photo Rajiv Singh
      Rajiv Singh

      Hello Ram, can I reach out to you for additional questions?

      Author's profile photo Rajiv Singh
      Rajiv Singh

       

      quick q - for tis step - 3. Determine Depreciation Areas in the Asset Class

       

      the depreciation keys you use for both depreciation areas are the same, since we are trying to use different rates, these should be different correct?

      Author's profile photo Giovanni Landi
      Giovanni Landi

      Hi Guru,

      How can I transport in other environments the OADB_WZ activity?

      thanks and Best regards

      Author's profile photo Nagarjun Nagarjun
      Nagarjun Nagarjun

      HI Ram Kumar,

      In this Document missing one configuration part.

      Could you please send me the T:Code: OABT Screenshot. it will help me.

      could please send me the entire Configuration for this document.

       

      Regards

       

      Nagarjun

       

       

      Author's profile photo Jean Franco Caringi Nava
      Jean Franco Caringi Nava

      Terrific work!

      Is there a similar blog for “Parallel Valuation Method: Accounts Approach”?, as metioned here: https://help.sap.com/doc/7851ec9a16b04ee9926e2487da804f31/1610%20001/en-US/11a9445269598544e10000000a44538d.html

      Thanks in avance!

      Author's profile photo Maggie Liu
      Maggie Liu

      hi,Ram

      Very thank you for your helpful post,it makes me have a clear mind about parallel account for FA,I have the same case now,but the difference is that I have 3 different currency in my system,company code currency VND,2nd currency is CNY and the 3nd currency is USD,if we only set one delta depreciation area,how can it handle with 3 different currencies at the same time with these variance?How do I set

      this in sap system?

      Please give me some idea if you know it,thank you in advance.

       

      Maggie