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 In SAP standard Asset Management, as explained in previous pages, the Depreciation Areas serve as
accumulators for the asset value and depreciation value for all of the depreciation calculations. All
acquisitions, transfers and retirements are tracked in the depreciation areas and the depreciation
postings are calculated from the resulting period-end value of the assets.
For Joint Venture Accounting, SAP used the Depreciation Areas and developed a method of
accumulating the postings based on recovery indicators.
The value posted to the depreciation area
is driven by the fact that the entry is billable or nonbillable.
For Joint Venture Accounting, three new depreciation areas must be configured.

1. Billable - This depreciation area is linked to the recovery indicator specified as billable.

2. Nonbillable - This depreciation area is linked to the recovery indicator specified as

nonbillable.

3. Gross Value - This depreciation area is a derived area representing a summation of

the billable and nonbillable depreciation areas.

Explanation of Benefits
1.

Logical document (alignment of FI and CO for easy analysis across all dimensions via
HANA views)

2.

Line-item detail (no more totals and indices, aggregation on the fly via the power of HANA)

3.

Faster processes (significant speed-up through code push-down to HANA)

4.

Parallel ledgers (option to cover parallel accounting standards via multiple ledgers and not
just parallel accounts)

5.

Document split (option to create balanced books by additional dimensions such as

segment or profit center)
Ledger merge for B/S (remove redundancy of ledgers like GL, consolidation preparation
ledger, cost of goods sold ledger, profit center ledger)

6.
7.

Ledger merge for P&L (same as 6., but restricted to P&L)

8.

Real-time integration CO-FI (each CO document crossing segments, profit centers, or

functional areas is posted to FI directly, no more need for processing the reconciliation
ledger at period-end)

9.

Extensibility (additional fields)

Remarks

Extensibility in Smart Accounting is planned. Once available, it will be very straight-forward

(just introduce new fields for line items no need to update multiple tables), and HANA will
help achieving good performance. In SAP ERP, there is also extensibility customers can
add any new field to the New G/L totals data base. However, from a performance point of
view, this extensibility is practically limited.

Real-time integration from CO to FI is one element of getting FI and CO closer aligned. But,
it does not include the benefits of aligned FI and CO documents provided by Smart
Accounting.
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Migration from Classic G/L to New G/L

Provides benefits 4 to 6 (black color)

Provides benefits 7 to 9 (blue color)

Migration from Classic G/L to Smart Accounting

Provides the benefits 1 to 3 of the new HANA-optimized architecture (brown color)

Adds the benefits 7 to 9 of New G/L (blue color), extensibility is stronger (therefore
shown in brown color).

Does NOT provide benefits 4 to 6 of New G/L currently this is a planned

enhancement (see dashed arrow)

Migration from New G/L to Smart Accounting

Provides the benefits 1 to 3 of the new HANA-optimized architecture (brown color)

Keeps the benefits 4 to 9 of New G/L (black or blue color), extensibility is stronger
(therefore shown in brown color).

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The summary allows the learner to recap what they learned during the lesson.
It should be more than a listing of the objectives of the lesson. It should be result oriented and
review the main learning points of the lesson.

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