I am Betty Guedez and brought this blog post as the first one of a series of documents in which I will
provide hints of what to do during finance conversion projects, regarding different business processes affected by the new data model to be implemented and along the stages till conversion is completed and the S/4HANA system is finally operative.
It is important for you to take into consideration that some reports, notes and KBA´s could be no longer valid as S/4HANA is a product in ongoing optimization.
This document is based on S/4HANA release 1909.
So now, I will provide guidance on Asset Accounting preparation activities and some of common steps executed in preparing this business process to move to New Asset Accounting in S/4HANA.
In the following picture, we can see the 2 main stages in a conversion project, according to Activate
methodology. Under Preparation phase, SI Checks and below it, preparation activities relevant for all
business processes. Simplification items Identification and Asset Accounting are in the circle.
There are 2 possible scenarios of existing Asset Accounting when a system conversion takes place:
- Classic Asset Accounting is in use, or
- New Asset Accounting is active already
As Prepare phase for all these business processes also covered reconciliation activities, which provide a significant tool to identify and fix data inconsistencies prior to conversion process, let´s have a look on these reconciliation tasks.
In the ERP, reconciliation tools are available (and necessary) because the data model required
harmonizing the financial information that was dispersed in different tables. We will use these same tools to: a) identify and b) fix inconsistencies, before starting the conversion process. Let´s call this preliminary step Reconciliation activities.
If Classic Asset Accounting is in use:
- Execute transaction code ABST2 (also available thru transaction code SA38, program RAABST02), to access a program that reconciles FI-AA postings against G/L posting. This report outputs the complete list of Asset Accounting accounts, where those that need postings to get them aligned (reconciled) with G/L can be seen.
The result looks like:
G/L accounts belonging to Asset Accounting account determination are evaluated and differences are shown like the one highlighted.
- Execute transaction code ABST (it is also available thru transaction code SA38, program RAABST01): This program identifies differences in balances between Asset Accounting and G/L, due to postings made in Asset Accounting but not found in G/L.
Initial screen of ABST is as follows:
If New Asset Accounting is Active:
- Execute transaction code ABST2 (also available thru transaction code SA38, program RAABST02), as explained in (1).
- Execute transaction code ABSTL (it is also available thru transaction code SA38, program
FAA_GL_RECON): This transaction code has the same functionality as ABST (explained above), but for New Asset Accounting.
Common steps for both scenarios:1
- Execute report Asset History Sheet: Thru transaction code SA38, program name RAGITT_ALV01.
This report brings detailed information of assets in many different layouts (See available layouts on transaction code OA79).
Once you have the G/L accounts with differences: Along with the Company Code, you can use the
account determination as the selection criteria (hit Dynamic Selections) to execute RAGITT_ALV01.
The report will retrieve all the asset transactions on those accounts.
- Making a comparison between tables BSEG and ANEP for all the assets under investigation is also
of great help in identifying what is missing on any of both sides, G/L and Asset Accounting. Proceed as follows:
- Go to ANEP, providing Company Code, Fiscal Year and Asset Number. In case there are a lot of records to analyze, try reducing the selection using Period.
- Copy the values of BELNR field (document number)
- Go to BSEG, providing the same criteria as you did on ANEP but adding BELNR (Document Number. Paste the values (you have them on the clipboard). Retrieve the records
- Compare one to another
- If differences do not show up, try deleting Document Number from selection criteria on BSEG
We can see this comparison on the following picture (without going any deeper because that exceeds the purpose of this document):
- Once you determined that there are missing entries on Asset Accounting side, you can use correction program RACORR05 (again, thru transaction code SA38). This utility program uses the FI document details to create the required Asset Accounting entries. Make sure you have the following information to proceed with RACORR5:
- Document Number
- Document Type
- Company Code
- Fiscal Year
You can tick Test Run to verify information is correct and after that, untick Test Run for definite
- For missing entries in G/L, exact amounts can be seen in report RAGITT_ALV01: For this, execute RAGITT_ALV01 using the parameter “List assets” and find the asset master record. With this information, a correction journal entry in FI with transaction code ABF1 (SAP Note 69225) can be posted, as follows:
- Sometimes the fiscal year is different in FI and AA (SAP Note 375419) -> execute RAGITT_ALV01 in the next year and to identify the exact missing amount.
Now, let´s continue with second step.
Preparation Steps to New Asset Accounting:
- Getting ready for conversion process: Start with the execution of report Simplification Item Check (transaction code SA38 – report /SDF/RC_START_CHECK) and search for components related to Asset Accounting (SI*_FIN_AA)2.
The following picture shows the entry screen of Simplification Item Check (SIC): Execution
- Fix the errors found by SIC report (if any) and continue with preparation activitities
- Fiscal Year end for Asset Accounting must have been already performed for previous fiscal year.
Then, relevant tasks that shall be performed are the following:
- Execute transaction code ASKB – Periodic Postings in Asset Accounting
- Execute transaction code AFAB – Depreciation Run
These activities drive us to an important subject of this document:
Restrictions of Asset Accounting during Software Update Manager (SUM) execution.
In the following picture, we see the conversion process where Software Update Manager controls the execution of all steps required to complete the system conversion to S/4HANA.
It is very important that, after periodic postings are done and Depreciation Run is executed (step 12), no more periodic postings should be done in Asset Accounting till conversion process has been completed. The reason is that is not possible to make any corrections or fix anything of these new postings once in S/4HANA, in case of need. On top of that, Depreciation calculation is performed on the fly in S/4HANA, so it´s better that new postings wait till S/4HANA is running, to avoid mismatched balances caused by incomplete processing (ASKB, for example) in current ERP.
Besides that, some findings in customer conversion projects reveal that certain AA postings not 100% completed, made after Depreciation run but before Business Downtime starts, could cause errors in Simplification Item Check executed just before finance Conversion or lead to excessive execution time of Conversion steps.
There are some ways to avoid these issues
One could be notifying the users not to perform any Asset Accounting activities till business downtime ends. In the picture, it means, after happens. This could work and requires full commitment of business and project team.
Another way is blocking AA activities during this period and restart operations once the business
downtime has ended and reports have been issued to certify everything is OK. In our drawing, this
period happens between SUM phases Extraction and Postprocessing. We called it User lockdown and ramp down business operations.
Important SAP Notes regarding Asset Accounting when in conversion to S/4HANA
- Adjust Ledger Assignment and Fiscal Years according to SAP Note 2220152 – Ledger approach and
Asset Accounting (new): Alternative fiscal year variant for parallel valuation
- Every combination Ledger/Currency will require at least one Depreciation Area definition in the
Valuation Plan (2403248 – FI-AA (new): Availability of RAFABNEW)
- For additional recommendations, please go to note 2450680 – Reversal of depreciation posting
(report RAPOST2000) is not possible
- Whenever is possible, it is strongly recommended to keep record and evidences of each conversion
cycle. It is very useful to keep a log of all errors, issues and solutions/notes/KBAs applied in terms of
enrich each conversion cycle with efficiencies based on previous experiences. In fact, documentation of the following activities shall be kept:
▪ Reconciliation Activities
▪ Configuration Activities
▪ Conversion steps
▪ Post Conversion Activities
And finally, my conclusions on this topic is never underestimate the advantages of having a healthy database and consistent financial transactions, with the cleanest traceability achieved by complete verified postings, which meet all the requisites of the accounting principle under they have been created.
This is specially important regarding Asset Accounting, because of the impacts of the innovations brought by the new data model and have on this specific business process.
And never forget: Early detection avoids late trouble.
Hope you like this content.
1 Process detailed in SAP Note 2032547 https://launchpad.support.sap.com/#/notes/2032547
2 Readiness Check report is of great help as components verified on this report are the same ones which will be addressed in Simplification Item Check