This documnet will give you the detailed explanation of New asset accounting functionalities, configuration and end user screen details, I am hoping that this documnet will give some inputs about new asset accounting in simple finance.
Prerequisites for new asset accounting:
Enterprise activation EA-FIN is required for FI-AA (new), check the OSS note 1121965 for further functionalities and information.
For every additional currency type defined on the company code a corresponding depreciation area need to be set up.
Download Pre-check report (RASFIN_MIGR_PRECHECK) via note 1939592 and 2129306
New asset accounting features
- Fixed asset accounting based on universal journal
- After new asset accounting migration, previous year reporting is possible due to compatibility views.
- We have an option of assigning the depreciation is to accounting principle.
- Here we can segregate the accumulated depreciation and depreciation asset wise, but it is not happening now in classic asset accounting.
- Simplified chart of depreciation, only one depreciation area per valuation is necessary, no delta depreciation areas required for parallel valuation, but which is happening now in classic asset accounting.
- Flexible account determination and no more FI-AA reconciliation is required.
Benefits of new asset accounting:
- No more hard coupling of depreciation area 01
- Posting to different periods possible, but beginning /end of the FY need to be equal.
- New transactions for accounting principle, depreciation area specific documents.
- The beauty of new asset accounting is always systems will posts the separate documents per each accounting principle, like ledger specific document in new GL.
- As I said above details depreciation postings will happen each asset wise.
- The traditional asset tables like ANEK, ANEP, ANEA, ANLP & ANLC now replaced with ACDOCA and ANEK table data will be replaced with BKPF; we will call ACDOCA as a universal journal table.
- Due to compatibility views we will get the old year reports in new asset accounting.
- In new asset accounting technical clearing account acts as a zero balance clearing account in new GL and it is a offsetting account.
- In new asset accounting after posting the document, the display document in FB03 contains the special tab of Asset accounting display, once you click on this document it will give you the accounting principle wise posted accounting document, here the technical clearing account will acts as a offsetting account in both the accounting principles.
The below picture will give you the clear understanding of local GAAP and IFRS will update, assume that if you are procuring 10000 EUR asset and in local gap you have to capitalize the 500 EUR freight charges. Here we have IFRS and LGAAP as two different accounting principles.
- In AW01N transaction you have hierarchical views for both accounting principles and we can differentiate the same.
- The AFAB depreciation screen modified completely and you can give the company code range in AFAB screen, accounting principle specific we can run the depreciation.
- Now the reason for posting run options are obsolete in AFAB.
- In the classic asset account, system won’t allow you to post any depreciation if you have errors in depreciation run, but now in new asset accounting, you can exclude the errors and can execute the depreciation for other assets, like cost estimate for materials in CK40N.
- Former IMG activity reset posted depreciation is obsolete due to redesign of depreciation run.
Balance Carry forward:
Define Depreciation area :–
Financial Accounting (New) -> Asset Accounting (New) -> Integration with General Ledger Accounting -> Define How Depreciation Areas Post to General Ledger (TCODE – OADB)
Here we define depreciation area for minimum of all accounting principle with different currencies.
Define Technical Clearing account:
Financial Accounting (New) -> Asset Accounting (New) -> Integration with General Ledger Accounting -> Define Technical Clearing Account for Integrated Asset Acquisition
We define technical clearing account at chart of account level and/or also with different account determination basis.
Define depreciation area for quantity update (if necessary):
Financial Accounting (New) -> Asset Accounting (New) -> General Valuation -> Depreciation Areas -> Define Depreciation Area for Quantity Update
Quantity updates in real time is possible for depreciation areas other than 01. This function is especially relevant in case of collective low-
Value assets. Currently the system uses depreciation area 01 for updating quantities unless we have configured different depreciation area for the same.
Define alternative Doc. Type for Original Trans.Type (if necessary):
Financial Accounting (New) -> Asset Accounting (New) -> Integrated Transactions: Alternative Doc. Type for Acctg-Princpl-Spec. Docs -> Specify Alternative Document Type for Acctg-Principle-Specific Documents
This configuration can be necessary, if we are using functionality of document splitting and we want the document splitting rules to be
Different for the business transaction variant of the valuating document (asset acquisition) and the operative document (Accounts Payable).
This configuration could also be necessary, if our organization requires that the valuating documents are posted with a different document
type than the operational documents.
This configuration can be made company code dependent as well as company code independent.
Define Revenue Distribution for Fixed Asset Retirement:
Financial Accounting (New) -> Asset Accounting (New) -> Transactions -> Retirements -> Gain/Loss Posting -> Define Revenue Distribution for Fixed Asset Retirement
At company code level we specify how the system is to distribute revenues arising from asset retirements: either based on the net book
Value or acquisition / production costs (APC). In the standard system, the distribution is based on the net book value
Smoothing is no more relevant (and available) any more
Welcome your valuable inputs and happy learning.