The S/4 Hana Finance Add-on running on HANA database provides enterprise users a new way of performing finance operations with great benefits like real time data, easy period closing and faster analytical capabilities along with feature rich user interface thanks to Fiori applications.
In this document, an overview about new asset accounting migration process and the embedded new features are outlined for the benefit of learners.
S/4 Hana finance add-on architecture is based on new GL and comprises of new asset accounting module. Customers who want to migrate to S/4 Hana finance add-on must migrate to new asset accounting also. Other than greenfield implementation scenario, the S/4 Hana implementation involves necessary migration procedure to new asset accounting (from classic asset accounting).
During preparation phase of migration process certain prerequisites for new asset accounting will be checked by report RASFIN_MIGR_PRECHECK (via note 193952 installation). System won’t allow to continue with further migration steps unless this check is successful. Below are those prerequisites:
- Periodic postings (ASKB) are complete
- Periodic depreciation postings are complete
- Asset reconciliation with general ledger is complete
- Business function EA-FIN is active (for new depreciation engine)
- New GL is active (may not be entire new GL settings)
Along with above conditions – chart of depreciation should have at least one depreciation area per currency type of company code (this applies to all chart of depreciation). Also if parallel accounting by ledger approach is active, the depreciation areas with valuation matching the non – leading ledgers must exist. During this phase, the posting periods should be locked until migration is complete.
After installation of S/4 Hana module new GL customization involving document splitting, accounting principles, ledgers etc. should be configured manually (if old system was in classic GL version).Along with this, the required setups for new asset accounting should be configured manually. Below is a list of such settings relevant to new asset accounting:
a. Create accounting principles and ledger groups followed by their assignment.
b. Create technical clearing account (this account is reconciliation account of asset type)
If there is conflict in field status level – create different technical clearing account per account determination using below settings:
c. Define depreciation area for Quantity update – by default first depreciation area will be selected by system:
d. System provides settings to define different document type for ledger specific postings during integrated acquisition postings
Settings at client level:
Settings at company code level:
e. Settings for revenue distribution for retirement by APC or Net book value:
f. Settings for posting Net book value or gain/loss during retirement:
At company code + depreciation area level:
At company code level:
g. Remove restriction of transaction types to depreciation area (as new tcodes allow area specific postings)
In new asset accounting – transaction types are not restricted to depreciation areas any more. If such transaction types exist in old system, it can be made
obsolete by choosing below setting:
The next step involves migration of each of chart of depreciation. In new asset accounting every depreciation area is treated as equal and can post to general ledger in real time. The periodic postings are no longer applicable (program RAPERB2000 is not available). In the chart of depreciation migration- the depreciation areas are assigned to accounting principle ( which in turn assigned to ledger group) and set the post to GL indicator.
Note that area’s 01, 30 post to GL in real time and other two areas are statistical.
In the example :Area 01 set for leading valuation and area 30 for non-leading valuation.
below options available in posting to G/L field:
Note that the depreciation terms and valuation adoption should be among depreciation areas assigned to same valuation. The areas posting to GL in real time are independent. (with indicator 00)
Below section provides an overview of changes to transactions in new asset accounting module:
As all depreciation areas post real time to G/L, the integrated acquisition process makes use of clearing account.
Below is an example of integrated asset acquisition F-90:
GL 14197 is the technical clearing account. The asset 2000088 is not capitalized yet.
Once ledger specific documents are posted – the asset is capitalized. (5100000464 in 0L ledger and 5100000465 in C1 ledger group)
below depiction gives an overview about this transaction:
In above illustration, the depreciation areas 01, 30 are posted in real time during the process.
In account approach: technical clearing account together with contra account for acquisition balances to zero.
The transactions for acquisition, transfer, revaluation, retirement allow postings to specific depreciation area.
ex: ABZPL : Acquisition from affiliated company
If both fields left blank, system posts to all valuations.
Periodic posting process:
As all depreciation areas can post to GL in real time, periodic postings are no longer needed. The program RAPERB2000 (ASKB) does not exist in system.
Depreciation posting process:
The depreciation transaction screen is simpler and runs much faster as based on Hana platform.
The process can be executed even if few assets have issues.
For each master data changes or postings – system automatically calculates planned depreciation values in real time. The earlier depreciation calculation program AFAR continues to exist.
Also, note that smoothing concept is no longer available in new asset accounting.
Changes in fiscal year end process:
The program for balance carry forward postings for GL – SAPFGLBCF (t.code – FAGLGVTR) carry forwards balances of assets in addition to GL balances.
Program RAJAWE00 doesn’t exist.
Changes in database tables related to asset accounting:
In S/4 Hana finance platform the index and aggregate tables are removed to reduce the data redundancy, increased throughput and to reduce data foot print. With this new architecture – the universal journal entry table ACDOCA stores line items from GL, AA, ML, CO sub modules. This also removes need for reconciling general ledger with asset accounting.
Few changes include :
- Header table ANEK replaced by BKPF.
- Actual data earlier stored in tables ANEP, ANEA, ANLP and ANLC are now stored in table ACDOCA.
- Statistical data stored in table FAAT_DOC_IT
- Year dependent attributes of assets stored in table FAAT_YDDA
Custom programs compatibility:
The custom program developed earlier will continue to work in new platform. SAP provides equally named DDL SQL views which internally calls ACDOCA to fetch the values. For example: BSIK table (No more a transparent table !!)
Note: The technical installation step in the migration process involves taking backup of such tables (index/aggregate) and creating equally named views.
The above details are based on my experience in working on S/4 Hana 1503 On – premise version.
Please share your feedback, suggestions if any.
Ravish R Prabhu