Skip to Content
Product Information
Author's profile photo Ajeet Kumar Agarwal

S/4HANA- New Asset Accounting – Considering Key Aspects

This blog is focused on New Asset accounting for ledger approach in multiple currency environment. New Asset Accounting is the only Asset Accounting solution available in S/4HANA, classic Asset Accounting is not available any more.

I have covered following key topics within S/4HANA New Asset Accounting keeping in view various questions coming in from different customers/partners on this key innovation step taken within Finance as part of S/4HANA simplification and we need to be very clear on this new requirement before starting the new or conversion S/4HANA project.

1. Pre-requisite Business Functions

2. Data Structure Changes in Asset Accounting

3. New FI-AA-Integration with the Universal Journal Entry

4. Asset Accounting Parallel Valuation

5. Key Configuration Consideration in Ledger Approach

6. Why will use a technical clearing GL account

7. New Asset Accounting Posting Logic

8. FI-AA Legacy Data Transfer

9. Adjusting chart of Depreciation Prior to Conversion

10. Installing SFIN in Conversion/Migration Scenario

11. Subsequently create a new depreciation area in New Asset Accounting


1. Pre-requisite Business Functions

Activate the following Business Functions

  • Please refer last section of this blog for more detail on business functions.

2. Data Structure Changes in Asset Accounting

  • Actual data of ANEK, ANEP, ANEA, ANLP, ANLC is now stored in table ACDOCA. ANEK data is stored in BKPF.
  • Compatibility views FAAV_<TABLENAME> (for example, FAAV_ANEK) are provided in order to reproduce the old structures.
  • Statistical data (for example, for tax purposes) previously stored in ANEP, ANEA, ANLP, ANLC is now stored in table FAAT_DOC_IT
  • Plan data previously stored in ANLP and ANLC is now stored in FAAT_PLAN_VALUES
  • Classic Asset Accounting is mostly transformed automatically into the New Asset Accounting by executing mandatory migration steps related to Asset Accounting.
  • As of release SAP S/4HANA 1809, the BSEG table will no longer be updated with the depreciation run (transaction AFAB, AFABN- Refer SAP Note 2383115. It is also no longer possible to subsequently activate this update.
  • Posting to different periods possible (restriction: beginning/end of FY needs to be equal) refer OSS note 1951069/ 2220152
  • Following table shows some redundant/new Asset accounting programme.

3. New FI-AA-Integration with the Universal Journal Entry

Asset Accounting is based on the universal journal entry. This means there is no longer any redundant data store, General Ledger Accounting and Asset Accounting are reconciled Key changes are listed below: –

  • There is no separate balance carry forward needed in asset accounting, the general balance carry forward transaction of FI (FAGLGVTR) transfers asset accounting balances by default.
  • The program Fixed Assets-Fiscal Year Change (RAJAWE00) transaction AJRW is no longer has to be performed at fiscal year change
  • Planned values are available in real time. Changes to master data and transaction data are constantly included
  • The most current planned depreciation values will be calculated automatically for the new year after performing the balance carry forward. The depreciation run posts the pre-calculated planned values.
  • The Selection screen is simplified as the “reasons for posting run” (planned depreciation run, repeat, restart, unplanned posting run) are no longer relevant.
  • Errors with individual assets do not necessarily need to be corrected before period-end closing; period-end closing can still be performed. You have to make sure that all assets are corrected by the end of the year only so that depreciation can be posted completely.
  • All APC changes in Asset Accounting are posted to the general ledger in real time. Periodical APC postings are therefore no longer supported.
  • Transaction types with restriction to depreciation areas are removed in new Asset Accounting and you can set the obsolete indicator in the definition of the transaction that were restricted to depreciation areas in the classic asset accounting.

4. Asset Accounting Parallel Valuation

  • Very Important part of new Asset accounting is parallel valuation in multicurrency environment.
  • The leading valuation can be recorded in any depreciation area. 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.

5. Key Configuration Consideration in Ledger Approach

We need to answer some basic question before configuring new asset accounting in S4 Hana environment as this would determine the required minimum depreciation areas to align the FI with Asset Accounting. i.e.

  • Required Valuation Approach

  • How Many Ledgers (Leading + Non Leading) exists or to be configured.

  • What all currencies are used in each of the ledgers.

For Example:-

In this Example we have one com code which has 2 ledgers 0L & N1 & these 2 ledgers having 3 currencies i.e 10,30 & 40 as shown below.

Above mapping is to ensure and establish link between depreciation area/accounting principal and Currency

Explaining with ledger approach example. From release 1503 i.e initial version of SAP Finance add on version in S4 Hana a new table ACDOCA is introduced which stores the asset values also per ledger /per currency on real time basis & no need to have any reconciliation between Finance and Asset accounting and to do so it is must to follow the guidelines while setting up depreciation areas & respective currencies, which I have tried to explain with an example as given below: –

Ledger & currency setting has to be done in New GL in the following SPRO node.

Financial Accounting (New)–> Financial Accounting Global Settings (New)–> Ledgers–> Ledger –> Define Settings for Ledgers and Currency Types

Fixed Asset Accounting currently only supports the FI relevant  (BSEG-) Currencies.
For additional currency types, which are not BSEG relevant, you do not need to create dep area; these currencies are converted during posting. This means, the sum of all depreciations does not balance with the activation value for the additional currencies.

It is on roadmap for later releases, that Fixed Asset Accounting calculates the depreciation with the historic (activation) values in all currencies, but currently Fixed Asset Accounting does this only in the BSEG Currencies.

Define Depreciation Areas

Depreciation Areas defined as per new FI-GL & FI-AA requirement so here at least 6 depreciation areas are must so that ledger wise each currency can be represented in separate depreciation area & these depreciation area is assigned to Accounting principal.

Specify Depreciation Area Type

Specify Transfer of APC Values

In this activity, you define transfer rules for the posting values of depreciation areas. These transfer rules let you ensure that certain depreciation areas have identical asset values

Specify Transfer of Depreciation Terms

In this activity, you specify how the depreciation terms for a depreciation area are adopted from another depreciation area. You can specify if the adoption of values is optional or mandatory. If you specify an optional transfer, then you can change the proposed depreciation terms in the dependent areas in the asset master record. In the case of a mandatory transfer, you cannot maintain any depreciation terms in the asset master record. In this way, you can ensure that depreciation is uniform in certain depreciation areas.

Define Depreciation Areas for Foreign Currencies

For every additional currency type defined on the company code a corresponding depreciation area needs to be set up.

As explained in previous step here we need to define the currency for each dep area so for example if a company code has 2 ledgers i.e 0L and N1 with 3 currencies then at least 6 depreciation areas should be setup & currencies should be assigned for each depreciation area ( Here leading valuation depreciation area will derive currency from com code currency)

Specify the Use of Parallel Currencies

Here we need to specify the Currency type for each for the Depreciation area which will align FI Currency type with Asset Depreciation areas & accordingly will be updated in ACDOCA.

With this setting its ensured that all currency types are aligned with respective depreciation area and asset values are getting updated parallel to Financial accounting per currency.

6. Why will use a technical clearing GL account

Architecture has been changed in the way that we now post in asset accounting for each valuation a separate document. So we perform on the asset part accounting principle specific postings. Technically we perform ledger-groups specific postings.

On the operational part (accounts receivable, accounts payable) the value is always the same for each accounting principle. So for the operational part we have to perform postings which are valid for all accounting principles. Technically we perform postings without specifying the ledger-group.

To split the business process in an operational and a valuating document there was a need to establish the “technical clearing account” for integrated asset acquisition.

  • For the operational part (vendor invoice/GRIR), the system posts a document valid for all accounting principles against the technical clearing account for integrated asset acquisitions. From a technical perspective, the system generates a ledger-group-independent document.


  • For each valuating part (asset posting with capitalization of the asset), the system generates a separate document that is valid only for the given accounting principle. This document is also posted against the technical clearing account for integrated asset acquisitions. From a technical perspective, the system generates ledger-group-specific documents.

Define account “Technical clearing account” for integrated asset acquisition.

Specify Alternative Document Type for Accounting Principle-Specific Documents

Here Operational document type will have original document used during entry & while generating accounting principal wise separate document it would be document type AA.

7. New Asset Accounting Posting Logic

The Operational Entry Document posts to a technical clearing account. The Operational Entry Document does not update the asset values; the asset data is only used to perform checks.

Accounting principle specific documents (1 to n). The accounting principle specific documents post to: – the technical clearing account in each view (balancing to zero) and the asset reconciliation account (and update the asset line items).

Asset Acquisitions Operational Document

Asset Acquisitions Accounting Principal (IFRS) specific Document

Asset Acquisitions Accounting Principal (LOCA) specific Document

Universal Table updated with respective ledger (0L & N1) and currencies.

Correction Asset Acquisition value in specific GAAP

Use Transaction code AB01L


8. FI-AA Legacy Data Transfer

  • You create asset master records for the legacy data transfer using transaction AS91.
  • You post the transfer values using transaction ABLDT; in doing so, a universal journal entry is posted for the fixed asset.
  • If wrong transfer values were posted, you must reverse the journal entry and then recreate it.
  • You can use transaction AS92 to change master data; transaction AS93 to display master data; and transaction AS94 to create sub numbers for the Asset master record.

Time of Legacy Asset Transfer

The transfer date is the cut-off date for the transfer of legacy data. The transfer will only include data up to this point in time. There are two possible scenarios.

  • The transfer date can be the end of the last closed fiscal year.

  • The transfer date can be in the fiscal year. This is called “transfer during the fiscal year.

Scenario 1: Transfer Date is the End of the Last Closed Fiscal Year:

In this case, you do not need to include any posted depreciation or transactions in the transfer of legacy data. You only need to transfer master data and the cumulative values as of the end of the last closed fiscal year.

Scenario 2: Transfer During the Fiscal Year

Along with the general master data, and the cumulative values from the start of the fiscal year (time period A), you must also transfer the following values.

  • Depreciation during the transfer year and Transactions during the transfer year
  • Include the depreciation posted in the legacy system since the end of the last closed fiscal year up to the date of transfer (time period B).
  • Any asset transactions in your legacy system that have a value date after the transfer date, but before the date of the physical transfer of data (time period C), need to be posted separately in the Asset Accounting component in any case.

Example of scenario 2 Legacy Data Transfer During the Fiscal year:-

Case: Legacy asset is acquired in previous year 01.01.2015 and taken over into simple finance system in mid-year of current year (30.04.2017)

Specify Transfer Date/Last Closed Fiscal Year (V_T093C_08)

Specify Last Period Posted in Prv. System (Transf. During FY) (OAYC)

Step 1:- AS91 to create Legacy asset master data

Step 2:- ABLDT to update Legacy Original Acquisition Value/ Accumulated Depreciation and current year Depreciation Posted.

Step 3: Verify Legacy Asset Planned Value

Step 4: Verify Legacy posted Value


SAP has provided standard tool to create legacy asset as well as upload balances together using transaction code LTMC .

Alternatively you may use BADI also as per SAP note 2270388 , this note as very detailed and  explains most of the changes with new Asset accounting in S/4HANA.

9. Adjusting Chart of Depreciation prior to Conversion

  • For the leading valuation of the ledger approach and accounts approach and for parallel valuations of the ledger approach its must that the parallel currencies in the leading ledger in General Ledger Accounting and in the depreciation areas in Asset Accounting must be the same as explained one example above with ledger approach scenario.
  • Using the migration program available under Migration Tools, you can automatically adjust the parameters in your charts of depreciation. If error messages appear stating that automatic adjustment is not possible, you have to adjust the charts of depreciation manually.
  • If until now you have 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 implement these areas in a separate project before you install SAP Simple Finance. In such a project, you must first perform the preparatory steps for creating depreciation areas in Customizing; you must then determine the new values for each fixed asset for a newly created depreciation area.
  • For company codes that are assigned to the same chart of depreciation, these company codes are not allowed to differ in number and type from the parallel currencies used in General Ledger Accounting.
  • Even if you migrate to SAP Accounting powered by SAP HANA from a system (e.g. EHP7) having FI-AA (new) already active, you still must migrate every active chart of depreciation.

10. Installing SFIN in Conversion/Migration Scenario

From the viewpoint of Asset Accounting, it is not necessary that you install SAP Simple Finance at the end of the year or period. However, it is required that you perform a complete period-end closing directly before you install SAP Simple Finance and some of the important point you must consider w.r.t New Asset Accounting. (for detail you may refer conversion guide)

  • To check if the prerequisites outlined are met, you have to check using the program for preliminary checks RASFIN_MIGR_PRECHECK. You import the current version of this program using SAP Note 1939592, before you install SAP Simple Finance in your system. Perform this check in all of your systems – in the Customizing system as well as in the downstream systems (test system and production system).
  • If until now you updated transactions in parallel valuations with different fiscal year variants and want to continue using this update, then you must implement a new representative ledger using the SAP General Ledger Migration Service before you install SAP Simple Finance. For more information about alternative fiscal year variants with parallel valuation, see SAP Note 2220152 Information published on SAP site.
  • You must have performed periodic APC posting (RAPERB2000) completely; the timestamp must be current.
  • Execute the periodic depreciation posting run (RAPOST2000).
  • Run the program for recalculating depreciation (transaction AFAR).
  • Reconcile your general ledger with the Asset Accounting subsidiary ledger, both for your leading valuation and for parallel valuations.
  • The migration must take place at a time when only one fiscal year is open in Asset Accounting.
  • You can check which fiscal year is closed in your company code in Customizing for Asset Accounting (New) under Preparations for Going Live à Tools à Reset Year-End Closing.
  • Ensure that no further postings are made in your system after running period end transactions before installing S4 Hana Simple Finance hence lock the users.
  • Perform a backup before installing SFIN
  • As soon as you have installed SAP Simple Finance, you can no longer post in Asset Accounting. To ensure that migration is successful, it is essential that you make sure that the prerequisites are met and a complete period-end closing was performed before you install SAP Simple Finance. Posting for new Asset Accounting is only possible again after you have completed the migration fully and successfully.
  • After completing the migration, make sure that no fiscal year that is before the migration is reopened in Asset Accounting.

11. Subsequently create a new depreciation area in New Asset Accounting.


This programme RAFABNEW Subsequent implementation of a new depreciation area available is not available with SAP S/4HANA because of Introduction of the journal entry with changed data structures

Hence if you need to setup a depreciation area as part of requirement of conversion from ECC to S/4HANA then setup new depreciation area in ECC only using programme RAFABNEW



This programme is available with SAP S/4HANA 1809 version onwards and this can be used to setup a new derpreciation area in SAP S/4HANA


For detail you may refer SAP note 2403248


Latest Updates on year end closing for S/4HANA 1909 and 2020

As of release SAP S/4HANA 1909, year-end closing is executed and reset using transaction FAA_CMP. The following applies for a ledger:

  • You can close a fiscal year for accounting for a ledger or a depreciation area.
  • You can also reopen the fiscal year last closed for one or more depreciation areas.

Despite these adjustments, program RAJABS00 (transaction AJAB) is still available in the SAP Easy Access menu (only until release SAP S/4HANA 1909).

In addition, as of SAP S/4HANA 2020, the program Year-End Closing Asset Accounting (Cross-Company Code and Ledger) (program FAA_CLOSE_FISCAL_YEARS, transaction FAA_CLOSE_FISC_YEARS) is available. You use this program to close a fiscal year from an accounting perspective for one or more company codes or ledgers.

For detail you may refer SAP note 2270388

Additional updates regarding business functions:-


Before the installation of the SAP S/4HANA, you must activate Financials Extension (EA-FIN), this will enable the new depreciation calculation engine, also EA-FIN should be activated in ECC system before installing SAP S/4HANA as a separate project activity.

Please refer this for additional detail –



This business function is available from ECC 6.0 EHP7 SPS2 onwards and supports you with parallel accounting. Asset Accounting performs real ledger-group-specific postings. In contrast to the use of delta depreciation areas, postings are now fully clear and trackable. In addition, this opens up improved options in reporting. You can now flexibly assign the depreciation areas of new Asset Accounting to the ledger groups of the general ledger. The fixed linkage of depreciation area 01 to the leading ledger in the general ledger no longer applies. The system posts parallel values with the actual values in Realtime; separate documents are posted for each valuation. This means the posting of delta values has been replaced; as a result, the delta depreciation areas are no longer required.

When you migrate to SAP S/4HANA you will be automatically switched to new asset accounting. The new asset accounting is activated as soon as the FIN_AA_PARALLEL_VAL is activated

New Asset Accounting is the only solution going forward. Note that this is no longer dependent on the FIN_AA_PARALLEL_VAL business function. If you go to SFW5 and see that it’s inactive, you may think that New Asset Accounting is not active, but that’s not the case. Whether the function is active or not, only New Asset Accounting is in the system as this is by default option with SAP S/4HANA without them being linked to the business function.

Please refer this for additional detail –


Brought to you by the S/4HANA RIG


Ajeet Agarwal

SAP S/4HANA Regional Implementation Group- APJ

Assigned Tags

      You must be Logged on to comment or reply to a post.
      Author's profile photo Umesh Chettiar
      Umesh Chettiar

      Very good article Ajeet, well articulated and informative.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author


      Thanks a lot Umesh !!!

      Author's profile photo Hari Krishna Prasad Lalam
      Hari Krishna Prasad Lalam

      Hi Ajeet,

      I have some doubts regarding asset accounting

      I have followed 2 accounting principle

      1 is Indian accounting standards for Leading leader (0L) Fiscal Year varient V3

      2 is IFRS for Non Leading Leadger (NL)  Fisal Year varient K4

      Doubt:- At the time of Asset Acquision (F-90) got Error related Leading leadger starting And Ending period and Non Leading Leadger Starting period and ending period must be same.please suggest me.

      3- if i maintanined depreciation area 20- costing then At the time of Gl accounts assign Not allowed accumulaed Depreciation due to this At the time of Depreciation Run (Afab) No Fi Document Generate.


      Author's profile photo Former Member
      Former Member

      Very good blog Ajeet.

      Author's profile photo Viswanatha Reddy Singamala
      Viswanatha Reddy Singamala

      Collectively you have given all in one place for new asset accounting.

      Nice document Ajit.





      Author's profile photo Shashank Agarwal
      Shashank Agarwal

      As usual ..again a tremendous job.!

      Keep it up!

      Author's profile photo irala reddy
      irala reddy

      Very good and clearly mentioned all steps.

      Thank you Ajeet Agarwal.



      Author's profile photo Shinas Hamsa
      Shinas Hamsa

      Perfect and Well Clarified all Scenario...

      Thanks for your time and valuable inputs..


      Author's profile photo Former Member
      Former Member

      Thanks Ajeet, very useful and comprehensive.

      Just a question on the following:

      Under your section 3 New FI-AA-Integration with the Universal Journal Entry, second bulletpoint, the fact that transaction AJRW is no longer required. How is this picked up in the asset reports, because I still get an error the moment the system date is in a new 'fiscal' year.

      Eg. today's date being 11.04.2017, the fiscal year-end was 31.03.2017, ie. we are now in 2018 fiscal year. When I try to run report S_ALR_87011994 "Asset Balances" via Fiori tile or gui, doesn't matter which, the following error appears, as we're used to in the past when a fiscal year change hasn't been carried out:

      Fiscal year change not yet made for company code XXXX

      Message no. AB059


      You have not yet carried out a fiscal year change for company code XXXX, although the current system date is in the new fiscal year.


      Carry out the fiscal year change for company code XXXX.


      Am I doing something wrong? Please let me know if you require additional information in order to assist.



      Theuns Pienaar

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author


      Hi Thenus,

      Thanks for pointing this and I should have make it more clear.

      In  S4 HANA  carry forward activity would be taken care by FAGLGVTR itself not through AJRW. The fiscal year close in Asset Accounting with AJAB is still the same







      Author's profile photo Ramky Prabhakar
      Ramky Prabhakar

      Good blod Ajeet. All in one place for AA. Thanks for your post.



      Author's profile photo Former Member
      Former Member

      Thanks Ajeet.

      I have loaded the data through ABLDT, but it has updated APC/AccDep values only in depreciation area '01' and rest all are 'zero'! Is this expected behavior for legacy asset upload or am i doing something wrong?

      Author's profile photo Former Member
      Former Member

      Got it. Thank you. I can see values in all the dep areas.

      Author's profile photo Former Member
      Former Member

      Thanks for the detailed explanations, Ajeeth.


      Question on the number of depreciation areas for parallel currencies: Since the asset master data is also updated in ACDOCA table is there any reason why we need to create a separate dep area for each currency type?  In other words, when we post any asset related transaction all the currencies defined in FI are updated along with the asset master record. In such a case, wouldn't ACDOCA itself would suffice for parallel currency reporting for fixed assets?  Please help to clarify. Thanks, Shyam

      Author's profile photo Monika Patel
      Monika Patel

      For version S/4HANA OnPremise 1809, 1909 it is required to have dep-area for parallel-currency. In advance versions likse S/4HANA 2020 & future ones, we do expect that additional depreciation-areas (as for each parallel currency) will not be required to be created.

      Author's profile photo Former Member
      Former Member

      Great article Ajeet.


      There is one concept I have been struggling with. As you know, S/4 has changed functionality of AS91/92 Takeover Values with the new T-code ABLDT. This transaction does not allow repetitive corrections to takeover values, which was previously allowed in ECC. SAP now requires that you reverse the transfer documents, before you make any subsequent updates to takeover values for existing assets.

      I have a requirement where the client makes updates to Ord. Depr and Special Depr. in ECC directly in AS92 for only the Tax Depreciation Areas. ABLDT does not allow changes to existing values for even the tax depreciation areas. Is there another workaround to make this possible in S/4 where the system will allow you to update Ord. Depr. directly via ABLDT for Tax Areas?

      Thanks for any details that you are able to share!

      Author's profile photo Former Member
      Former Member

      Hi Ajeet,

      Thanks for the detail explanation.

      Ajeet, can you provide some explanation for below points along with the example in New Asset Accounting S/4 HANA.

      1. New feature in Asset accounting to have the option to select the Quantity update at Depreciation level.
      2. Revenue Distribution at the time of Retirement of An Asset



      Author's profile photo Prasad Neelisetty
      Prasad Neelisetty

      Execution of AJRW is dependent on Support Pack.  Once system is upgraded to 1610/FPS-0002, AJRW is no longer available and FAGLGVTR is the only transaction that needs to be executed.


      Author's profile photo Former Member
      Former Member

      I was able to complete the Fiscal Year change without AJRW and there is a specific note from SAP which says we should not execute AJRW tcode in S/4 as we need to execute FAGLGVTR and this is available since 1503.

      Author's profile photo Shiela Guerra
      Shiela Guerra

      Hi Ajeet,

      We are implementing S4 Hana and we have completed the configuration for asset.  However we failed the activation and we followed the necessary steps indicated in Prepare Asset Accounting (New) document.  However, when I checked the New Asset Activation Status it is set to "Active (Posting not possible in Client).  Is there additional steps needed to activate the new asset accounting?  With this status, some transactions has errors during posting.

      Thanks in advance.







      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Shiela
      If pre-requisite of new asset accounting is configured then it should not be a problem, you try transaction FAA_DO_ACTIVATION in the client in which you see this status.



      Author's profile photo IT SJC
      IT SJC

      Hi Ajeet,

      Thanks for sharing.

      We are implementing S4 Hana and we have completed the configuration for asset. However, I cannot create a legacy asset master data via AS91, the transfer date is set as below:

      Transfer date: Dec.31.2016
      Lasted period posted in previous sys.: Dec.31.2016

      When I user AS91 to create a asset master data with capitalization date on June.01.2016 and click save, then I got an error message.

      Transaction..   AS91
      Update key...   68A2C311EFC20070E00599A6415E08C0
      Created......   11.09.2017, 11:43:11
      Completed....   11.09.2017, 11:43:11
      Error Info...   ANLC not updated : ? ? ?

      Would you please advice me am I doing something wrong? Thank you very much.


      Author's profile photo Pradeep Menocha
      Pradeep Menocha

      Very nice and informative blog Ajeet!

      Author's profile photo Alexander Karpov
      Alexander Karpov


      Hi, all.

      When we activate New Asset Accounting in EPH7 we get Error Message “Parallel currency depreciation area xx is not defined correctly” --> Message no. AC559, or error message "Parallel crcy area (crcy type xx) missing for area xx ch.of deprec. xxxx"(from note 2307443).

      But we can't use this note and set flag IdntTrm, because, we have different sums  in other depr areas.

      How can we resolve that problem and activate New Asset Accounting?

      Author's profile photo KUMAR KANDREGULA

      Very nice document. I was looking for this document. Can you Please write one more blog on 'Define Settings for Ledgers and Currency Types' in S/4 HANA finance. Example like  multiple ledgers, multiple currency's  and multiple accounting principle.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author


      Thanks for the feedback , I would try to incorporate this requirement in a separate blog.





      Author's profile photo KUMAR KANDREGULA


      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      For currency setup in S/4HANA 1610 Onwards you may refer this blog


      Author's profile photo Former Member
      Former Member

      Hello Ajeet ,

      Detailed explanation with clear screen prints and examples.

      Good Article.


      Sekhar Thallam




      Author's profile photo Arvind Pereira
      Arvind Pereira

      Hi Ajeet,

      SAP note for pre-check 2129306 has been discussed at length, this is a good article.


      Arvind Leo Pereira


      Author's profile photo Sandu Rakesh
      Sandu Rakesh

      Hello Ajeet,


      Thank you so much for documenting all the information  related to AA, this could be a reference document who are implementing and learning S4.

      I have one doubt In posting logics:

      Accounting principle LOCA why it is hitting to posting key 40 with GL code199990 instead 70 asset code.and what is could be the other impact if it is posting to 70 Asset code.


      Thanks in Advance.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Rakesh

      I agree with your comments the posting key should be used here 70 , however this may be one off case as I am not getting the same case in my other test cases.


      Author's profile photo Rajiv Singh
      Rajiv Singh

      Hi Ajeet,


      Thanks for this posting. I have additional questions, how to get your contact please veere.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author


      Hi Rajiv

      Thanks a lot , I would encourage you to post your query here.

      Author's profile photo Maria Defago
      Maria Defago

      Hi Ajeet,

      Thanks for your posting.

      I have an error whit the 2nd step LTMC transfer. Don't appears the asset class´s mapping, Do you know about this?

      Thank in advancce.

      "Asset class not entered

      Message no. BAPI1022001


      You want to create a main asset number (the CREATESUBNUMBER parameter was not set), but you did not enter an asset class.

      System Response

      The asset is not created.


      Transfer an asset class in the interface field GENERALDATA-ASSETCLASS."


      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Maria

      Sorry for late response , you may need to raise an OSS message for this error.



      Author's profile photo Arif Alacan
      Arif Alacan

      A very thoughtful and detailed article. Explains well the difference between the old and new asset accounting.

      Author's profile photo Former Member
      Former Member

      Hello Sir,

      Could you please help me on depreciation areas issue in 1709, plse find below issue and error.

      I have created T1 (Non-Leading Ledger) and assigned to my company code.

      Dep. area 1 (Area posts in Real time), 15 (Area Does Not Post). I assigned standard  accounting principle 60 for both 1 & 15, for depreciation area 30 i have assigned T1 (Area Posts in Real Time).

      While saving my request, i received warning below message.

      Adoption of values not allowed for area 30 in chart of depreciation TE00

      You cannot transfer values for depreciation area 30 in chart of deprec. TE00

      Transfer of dep. terms is not allowed in area 30 of chart of dep. TE00

      after saving, i tried to assign chart of depreciation to company code, i received below error messge.

      Transfer of dep. terms is not allowed in area 30 of chart of dep. TE00

      Message no. ACC_AA084


      A depreciation area can only adopt depreciation terms from a depreciation area to which the same accounting principle T1 is assigned. Or else the depreciation area posts acquisition values immediately; then the depreciation area is not allowed to adopt values from any other depreciation area.

      Depreciation area 30 adopts depreciation terms from depreciation area 01 in chart of depreciation TE00. However, different accounting principles are assigned to the two depreciation areas.


      Correct the setting in Customizing for Asset Accounting under Specify Transfer of Depreciation Terms.

      I tried to change specify transfer of APC values but system is not allowing to save.


      Thanks you in advance..



      Author's profile photo Luz Mery Hernández Torres
      Luz Mery Hernández Torres
      Hello everyone.
      We are implementing S / 4HANA 1709.

      It is necessary to load approximately 125.000 fixed assets and for this, we are using the bapi BAPI_FIXEDASSET_OVRTAKE_CREATE but we have problems of slowness.

      Can you please give any recommendation or share your experience regarding this charge in S/4HANA.

      Thanks for your help.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      I believe  you are using LTMC which migrates data by calling related BAPI, The performance constraints of Fixed Assets is a factor and it is acknowledged in Note 2631104. Also refer 2554160 for simulation run performance optimization.

      You could try the following to run parallel loads.Please try this with a smaller data set and increase with more batches gradually.

      Currently one migration object uses one backend job to load data. From LTMC side, I would suggest you to do the following to achieve parallel loading:

      1. Create multiple migration projects.

      2. Copy your customized migration objects among the projects to make sure all migration projects are identical.

      3. Split you file into several files.

      4. Upload the files among created identical migration projects.

      5. Start transfer for each of the migration objects

      6. You need to have enough background job sessions available in your system.


      Author's profile photo Warren Nash
      Warren Nash

      Hi, nice article.  ASKB is gone, but does this mean this is all in real time and does S/4 HANA support the derived area concept?

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Nash

      Derive depreciation is not supported with S/4HANA because this is not required , as all the postings are updated in the relevant depreciation area on real time basis not as part of transaction ASKB.



      Author's profile photo Warren Nash
      Warren Nash

      Ajeet, thanks.

      So the setup is still there in configuration for example APC - 31 depreciation = 50 derived area, but you don't need ASKB, is the correct way of saying it?

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Nash,

      We need not to create any delta dep area as the posting is updated on real time basis in both the ledgers and that’s why transaction ASKBN is redundant, and if there is already a delta dep area existing this would need to be setup as do not post. for detail understanding on this topic you may refer below help document.


      Author's profile photo Tinat Haider Syed
      Tinat Haider Syed

      Dear Ajeet

      I am working on Asset account scenario of Acquisition from Affiliated company in S4H system. I did all required configuration from account determination to creation of cross depreciation area, creation of variant to transfer the values to dependent depreciation areas as well.

      In my scenario, I am transferring asset from leading ledger company code to leading ledger and non leading ledger company code. After performing ABT1L, I can see all the values got transferred to leading ledger depreciation areas. But values for Non - leading depreciation areas are blank. Do we need to do specific settings for this. Please let me know the solution for this.

      Thanking you in advance.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Syed

      You may refer OSS note 2252440 to verify your dep area /accounting principal settings.



      Author's profile photo mohammed Gani
      mohammed Gani

      Thanks Ajeet for detailed explanation, well appreciated 🙂

      Have a query as regarding technical account when you are using account approach, you won't be able to use for other depreciation areas as we will have diff set of accounts. Any insight on same, will be highly appreciated as most of the projects who are on ECC using account approach, needs to continue accounting approach even after migration to SAP S/4 Hana. Thanks in advance 🙂

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Hi Gani

      You may want to take a look on the OSS note 2252440, which explains the difference between account approach and ledger approach and how the settings should be for depreciation areas in both the scenarios.




      Author's profile photo G Patra
      G Patra

      Thnks a lot for your valuable documents

      Author's profile photo Madhu Vutukuri
      Madhu Vutukuri

      Hi Ajeet,


      Great Article and all the responses as well. We have a unique situation where we have different Thresholds for each depreciation areas. For Book Area we would like a higher threshold and for statutory depreciation we want a lesser threshold. Means some assets should not exist in book area but in other areas. I guess this question is valid for both ECC and S4. Any insights into this is greatly appreciated.



      Author's profile photo Ramanathan Murugesan
      Ramanathan Murugesan

      Thanks a lot for your great effort.

      Author's profile photo Mandeep Singh Grover
      Mandeep Singh Grover

      Excellent blog.. very informative.. Thanks for sharing..!! 🙂

      Author's profile photo Keane AERO Helpdesk
      Keane AERO Helpdesk

      Very good article Ajeet

      Author's profile photo Raisme Wilhelm
      Raisme Wilhelm

      Good afternoon, we are presenting an error when executing the KO88 transaction when liquidating an investment order where the asset under construction indicates that the fiscal year change has not been made. Although in the respective tables the change in fiscal year is in 2020 but only in the fixed assets in progress is the year 2019 appreciated.

      Author's profile photo rafi d
      rafi d

      Thanks Ajeet pro, sharing your knowledge

      Author's profile photo Krishna Prasad Balanagu
      Krishna Prasad Balanagu

      very informative.. Thanks Ajeet

      Author's profile photo Santanu Ray
      Santanu Ray

      Dear Ajeet

      Great Informative Blog. It's give a very good perspective. Thanks for sharing it.


      With Respect


      Author's profile photo Alejandra Goicoechea
      Alejandra Goicoechea

      Thank for sharing Ajeet ! This is very detailed and useful.

      Author's profile photo Ajeet Kumar Agarwal
      Ajeet Kumar Agarwal
      Blog Post Author

      Thank you every one for your nice feedback

      Author's profile photo Marcela Martinez
      Marcela Martinez

      Thanks a lot Ajeet for sharing your knowledge.

      One question for you or for any of you who read it and can help me. I need to set to 0 the AMOUNT field (ANEPI-ANBTR) of some Parallel depreciation areas that we created and I need to do it in a custom and manual initial process (Z program for example). If I do it manually I use ABAW t-code (through Line Item menu option, into the pop-up I put 0 in the amount column of the desired area). I did a recording at SM35 t-code and when I executed it I realized that the mentioned pop-up is not taken into account, so a batch-input or call transaction custom process are not an option.
      Any idea about how can we set in 0 the amount for parallel depreciation areas at the beginning of Adjustment Inflation implementation?

      Thanks in advance and kind regards.


      Author's profile photo Georgi Georgiev
      Georgi Georgiev

      Hi Ajeet,

      Hi All,


      • I have the following case with Company Codes with three parallel currencies 10, 30 and 40 and sometimes 10, 30 and 50
      • Ledger for US GAAP = Depreciation Area 01
      • Ledger for IFRS = Depreciation Area 05
      • Ledger for Indian GAAP = Depreciation Area 07
      • Ledger for Local Statutory = Depreciation Area 08
      • Ledger for Tax = Depreciation Area 10
      • Depreciation Areas 01 and 05 and 07 and 08 and 10 are assigned to type of valuation 01 ``valuation for trading balance sheet`` even though they represent different accounting principles and are already assigned to different accounting principles. Is this correct config or should each one be assigned to 18 except Depreciation Area 01?
      • All additional Depreciation Areas for combination Ledger and Currency Type have been created properly.
      • MY PROBLEM IS: While executing the step ``Check Prerequisites for Activating Asset Accounting (New)`` as part of ``Realization Finance Migration`` I am getting the error messages ``Transfer of dep. terms is not allowed in areas 05 and 07 and 08 and 10`` and ``You cannot transfer values for depreciation areas 05 and 07 and 08 and 10 in Chart of Depreciation ..``

      Now going forward I have the following questions:

      1. How should be ``Specify Depreciation Area Type`` for Depreciation Areas 05 and 07 and 08 and 10 configured?
      2. How should be ``Specify Transfer of APC Values`` for Depreciation Areas 05 and 07 and 08 and 10 configured?
      3. How should be ``Specify Transfer of Depreciation Terms`` for Depreciation Areas 05 and 07 and 08 and 10 configured?





      Author's profile photo Muhammad Hasan Mufid
      Muhammad Hasan Mufid

      Hi Ajet,


      this is very informative blog articles.. Thanks for sharing 🙏



      Muhammad Hasan Mufid

      Author's profile photo Thilak Chagantipati
      Thilak Chagantipati


      I have 5 currencies , two Account principles and 2 Ledgers i.e., 0L and IT ( AA + IF)

      Acc Principle Desc Led / Led Grp Curr Curr Type Posting in GL
      0001 Local GAAP 0L INR 10
      0001 Local GAAP 0L EUR 30
      0001 Local GAAP 0L GBP 40
      0001 Local GAAP 0L AUD ZC
      0001 Local GAAP 0L USD ZD
      0002 IFRS IT (AA+IF) INR 10
      0002 IFRS IT (AA+IF) EUR 30
      0002 IFRS IT (AA+IF) GBP 40
      0002 IFRS IT (AA+IF) AUD ZC
      0002 IFRS IT (AA+IF) USD ZD


      how can i configure Asset accounting in sap s4 hand ( 1709 Version)


      Author's profile photo Thilak Chagantipati
      Thilak Chagantipati


      Ledger Ledger Name Leading Extn. Ledger type Under laying Led
      0L Leading Led Yes
      AA Non Led Led
      EX Extension Led Extension Led 0L
      IF IFRS
      Currency conversion settings
      CoCd Com name Curr ty Curr type Currency Source curr type
      2006 Infotech 30 Grp Currency EUR 10 - Com Code Currency
      2006 Infotech 40 Hard Currency GBP 10 - Com Code Currency
      2006 Infotech ZC Additional Currency AUD 10 - Com Code Currency
      2006 Infotech ZD Additional Currency USD 10 - Com Code Currency


      Ledger type Com Code Com name Loc Curr Type Global Curr. Type FreeDef Crcy 1 FreeDef Crcy 2 FreeDef Crcy 2 FreeDef Crcy 2 Fiscal year Pst Vrt 1st FI Currcy 2nd FI Currcy 3rd FI Currcy
      0L 2006 Infotech 10 10 30 40 ZC ZD V3 2006 10 30 40
      AA 2006 Infotech 10 10 30 40 ZC ZD V3 2006 10 30 40
      IF 2006 Infotech 10 10 30 40 ZC ZD K4 K006 10 30 40