New functionality

FI-AA in mySAP
ERP 2005

Torsten Großmann
Solution Management, SAP AG

©SAP AG 2005

© SAP AG 1
 New functionality for depreciation
calculation
New transaction type groups

©SAP AG 2005

© SAP AG 2
 Target

This presentation gives you

a short overview of the new functionality
in mySAP ERP 2005.
In general all new functionality is related
to the calculation of depreciation.

© SAP AG 2005

© SAP AG 3
 New functionality for depreciation
calculation
New transaction type groups

©SAP AG 2005

© SAP AG 4
 Overview new functionality for depreciation calculation

„ Period interval based calculation

„ Support of time-dependent depreciation parameters

„ Support of method changeover on period level

© SAP AG 2005

„ The calculation of depreciation is based on period intervals instead of calculating depreciation on each
single movement. From this follows that the fields „NAFAB“ and „SAFAB“ of the table „ANEP“ are not
updated anymore. This applies also to already posted movements.
„ Depreciation parameters in the asset master record can be maintained
time-dependent. Dependency on time is considered when depreciation is calculated.
„ A method change over is now possible on a period level - during the fiscal year.
„ The new functionality is available if the Add-On „EA-FIN“ is active.

© SAP AG 5
 Period interval based calculation

The previously single movement year based calculation is replaced by a

calculation that is based on period intervals.
Each movement within a fiscal year is assigned to a period and the
movements are summed up on a period level.
Period intervals are determined for the calculation of depreciation.
Calender Calender

1 31
Jan. Dec.

1 2 3 4 5 6 7 8 9 10 11 12

Period interval 1 Period interval 2 Period interval 3

Date Type of Amount Period Base amount Depr. Calculation of

movement interval for depreciation per depriciation
interval*
01.01.05 Acquisition 1.000 1 (= 6 months) 1.000 -50 1.000*10%* (6/12)
01.07.05 Partial -400 2 (= 3 months) 600 -15 600*10%* (3/12)
retirement
01.10.05 Acquisition 200 3 (= 3 months) 800 -20 800*10%* (3/12)
* Straight-line depreciation from useful life (= 10 years);
yearly depreciation of 10% from base amount
© SAP AG 2005

„ The calculation logic before mySAP ERP 2005 is based on calculating depreciation on movements (e.g.
acquisition, retirement etc.). For each single movement the depreciation is calculated when the movement
is posted.
„ The new calculation logic is based on period intervals. A fiscal year is portioned into period intervals. The
number of period intervals depends on the number of different periods with changes that affect the
depreciation calculation (e.g. aquisitions, retirements, change of depreciation parameters).
„ An example for the new logic of depreciation calculation is outlined on the slide.
The fiscal year is split up into the defined periods - in this example 12 periods (= 12 months).
An aquisition of 1.000 is posted in period 1. In period 7 a partial retirement of 400 and in period 10
another acquisition of 200 is posted.
The fiscal year is portioned into three period intervals as three movements in different periods have been
posted.
„ Determination of intervals for depreciation calculation:
- 1st period interval: period 1 up to perod 6 = 6 months (movement in period 1)
- 2nd period interval: period 7 up to period 9 = 3 months (movement in period 7)
- 3rd period interval: period 10 up to period 12 = 3 months (movement in period 10)
„ Except for some special cases the results of the movement based and period interval based calculation of
yearly depreciation are identical.
Nevertheless, the period interval based depreciation facilitates a more accurate calculation of depreciation.
This applies to the distribution of the yearly depreciation on the periods (depreciation of the year is
identical) as well as the calculation of the depreciation of a fiscal year (depreciation of the year is
different).
An example of a more accurate calculation of the fiscal year depreciation is outlined on the following
slides.

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 Example: Comparison of old and new logic

Two postings on an asset, depreciation = 10% of APC per year

1. Acquisition 01.01.2005: 1.000$
2. Partial retirement of 50% 01.07.2005: -500$

Old logic: Calculation by movements

Depreciation of the year = Sum of the depreciations of the transactions
1. transcation: 1.000 * 10% * (12 / 12) * (-1) = -100
2. transaction: -500 * 10% * (6 / 12) * (-1) = 25
Sum = -75

New logic: Calculation by period intervals

Depreciation of the year = Sum of the depreciations of the periods
from 01.2005 to 06.2005 1.000 * 10% * (6 / 12) * (-1) = -50
from 07.2005 to 12.2005 (1.000 - 500) * 10% * (6 / 12) * (-1) = -25
Sum = -75

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„ The comparison of the old and new logic of calculating the depreciation of the year is shown by two
movements on an asset. Assumption is that the fiscal year is split up into 12 periods.
„ Old logic:
For each movement the depreciation is calculated; the remaining periods of the fiscal year are considered.
Transaction 1: 1.000 (12 periods); depreciation = -100
Transaction 2: -500 (6 periods); depreciation = +25
„ New logic:
In the fiscal year are two movements in different periods. One movement is posted in period 1 and the
other movement is posted in period 7.
Due to the two movements the fiscal year is portioned in two period intervals.
The base value and periods per period interval are determined.
Period interval 1 (period 1 to 6): 1.000 (6 periods); depreciation = -50
Period interval 2 (period 7 to 12): : 500 (6 periods); depreciation = -25

© SAP AG 7
 Example: Fiscal year depreciation (1/ 3)

Asset acquisition value: 10.000

Useful life: 5 years
Depreciation of year: 2.000 (= 20%)
Remaining useful life: 1 year
Net book value: 1.000 (1.000 unplanned depr.)
Scrap value: none

Acquisition of 5.000 in period 4 in last year of useful life.

Year Acquisition Ordinary Unplanned Net book
depreciation depreciation value
2002 10.000 -2.000 ---------- 8.000
2003 ---------- -2.000 -1.000 5.000

2004 ---------- -2.000 ---------- 3.000

2005 ---------- -2.000 1.000
04/ 2006 5.000 ??? ----------

© SAP AG 2005

„ This example compares the movement based and period based calculation of the depreciation of the year.
„ The yearly depreciation is identical for the years 2002 – 2005.
„ An acquisition in 04/ 2006 results in a different depreciation of the year.

© SAP AG 8
 Example: Fiscal year depreciation (2/ 3)

mySAP ERP 2005 mySAP ERP 2004

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„ At the beginning of the fiscal year 2006 the planned depreciation is identical.
„ The remaining book value of 1.000 is amortized in the first 6 periods in 2006.

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 Example: Fiscal year depreciation (3/ 3)

mySAP ERP 2005 mySAP ERP 2004

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„ After the acquisition of 5.000 in period 4 the depreciation of the year is different.
„ Calculation of depreciation in mySAP ERP 2005 based on period intervalls.

Period interval 1:
3 Periods (period 1 to 3)
base value = 10.000 (acquisition value)
depreciation of interval 1: 10.000 * 20% * (3/ 12) = 500

Period interval 2:
9 Periods (period 4 to 12)
base value = 15.000 (acquisition value)
depreciation of interval 2: 15.000 * 20% * (9/ 12) = 2.250

Depreciation of the year is the sum of interval 1 and interval 2 = 2.750.

„ Calculation of depreciation in mySAP ERP 2004 based on transactions.

transaction in period 4 (9 remaining periods of the year)

base value = 10.000 + 5.000 (acquisition value)
depreciation of the year: 15.000 * 20% * (9/ 12) = 2.250
„ The depreciation is calculated differently if:
- the acquisition of 5.000 is not posted in period 1
- the net book value at the beginning of the year (=1.000) is lower than or equal to the originally
calculated depreciation of the year (=2.000).

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 Support of time-dependent depreciation parameters (1/ 3)

Within the asset master data maintenance the following

depreciation parameters can be entered time-dependent for each
depreciation area.

„ Useful life

„ Depreciation key

„ Scrap value

„ Scrap value percentage

„ Proportional part of depreciation

The time-dependent parameters are considered when the

depreciation is calculated.

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„ The depreciation parameters in the asset master data can be maintained

time-dependent. In mySAP ERP 2004 changes of the depreciation parameters were effective immediately
for all open years.
„ Changing of depreciation parameters is effective as of the date specified in the depreciation area.
„ Dependency on time is considered when depreciation is calculated.

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 Support of time-dependent depreciation parameters (2/ 3)

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„ Example of changed useful life:

- acquisition value: 10.000

- useful life: 5 years
- depreciation of the year: 2.000
„ The figures above show the planned depreciation on the basis of a useful life
of 5 years.
Depreciation of the year = 10.000/ 5 = 2.000

© SAP AG 12
 Support of time-dependent depreciation parameters (3/ 3)

Change in useful life !!

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„ The useful life has been changed from 5 years to 4 years effective on 01.07.2005.
„ Recalculation of yearly depreciation:

- acquisition value: 10.000

- useful life: 4 years
- depreciation of the year: 2.500
„ The depreciation of the periods 01 - 06 of the year 2005 remains unchanged.
„ Depreciation of the year 2005:

periods 01 – 06: 2.000 * (6/ 12) = 1.000

periods 07 – 12: 2.500 * (6 /12) = 1.250
Sum = 2.250

© SAP AG 13
 Support of method changeover on period level

To support method changeover on period level a new field UMPER

has been added to table ANLB which is treated according to the
already existing field UMJAR.

On depreciation calculation a method change over will be

performed on period level if calculation on single period level is
switched on using a new implemented BAdI method.

© SAP AG 2005

„ Before mySAP ERP 2005 the system checks at the time of the carry-forward of annual values whether a
method changeover is necessary.
In mySAP ERP 2005 a method changeover is possible during the fiscal year.
„ A new field „UMPER“ has been added to the table „ANLB“ to facilitate the method changeover on period
level.
„ A new method of the BAdi „FAA_DC_CUSTOMER“ needs to be implemented if the method changeover
on period levels is required.

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 Example: Method changeover on period level (1/ 3)

Method changeover in
period 09/ 2005

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„ - acquisition value: 12.000

- useful life: 2 years (= 24 periods)
- depreciation of the period: net book value (at the beginning of the
period) * 2 / 24
„ For example, the depreciation of the period 3 is calculated:
(12.000 – 1.000) * 2 / 24 = 11.000 * 2 / 24 = 916,67
„ The method is changed if the net book value is lower than 20% of the acquisition cost (=12.000 * 0,2 =
2.400).
„ In period 09/ 2005 the net book value at the beginning of the period is 2.297,19.
Since the net book value is lower than 2.400 the method is changed in period 9.
„ The net book value of 2.297,19 at the beginning of 09/ 2005 is amortized within the remaining 5 periods
(2.297,19 / 5 = 459,44).

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 Example: Method changeover on period level (2/ 3)

Method changeover if
net book value is lower
than 20% of acquisition cost

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 Example: Method changeover on period level (3/ 3)

Implement the method

„DEFINE_USE_MAX_PERIODS“

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„ The method changeover on period level needs to be activated by implementing a new BAdi method.
„ Create an implementation of the BAdi „FAA_DC_CUSTOMER“
(transaction: SE19).
„ Implement the new method „DEFINE_USE_OF_MAX_PERIODS“ .
The parameter „CB_USE_MAX_PERIODS“ needs to be set to „X“ (see coding example).
„ In the coding example the method changeover on period level is only valid if the depreciation area = 10
and the depreciation key = „NLNR“.

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 New functionality for depreciation
calculation
New transaction type groups

©SAP AG 2005

© SAP AG 18
 New transaction type groups

7 new transaction type groups with 4 new period control groups

are provided to assign the appropriate period control keys for
„ Revaluation
„ Investment support
„ Unplanned depreciation
„ Write- ups

Transaction Type Group Period Control Group Descripiton

53 B Investment support

76 D Write-up on reserves

78 D Write-up on unplanned depreciation

A1 A Revaluation/ Impairment

A2 A Revaluation/ Impairment (current year acquisition)

A4 C Unplanned Depreciation

A5 C Unplanned Derpeciation (current year acquisition)

© SAP AG 2005

„ Due to legal requirements (e.g. revaluation in Japan) mySAP ERP 2005 allows a customer defined period
control for the following transactions:
- revaluation
- investment support
- unplanned depreciation
- write-ups
„ 7 new transaction type groups with the assignment of 4 new period control groups are provided.
„ The new transaction type groups and new period control groups allow customers to define individual
period controls for the above listed transactions.
„ Please note that no delivered standard transaction type is assigned to the new transaction type groups. If
necessary, new transaction types with the assignment of the new transaction type groups need to be
defined.
„ There is no need to create new depreciation keys. If a customer defined period control is required the
period control method of the depreciation key can be adapted.

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 Customizing of transaction type (Example)

Double click

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„ In case an individual period control is required new transaction types need to be created.
„ In this example the new transaction type „X80“ has been created with reference to the transaction tpye
„855“.
The new transaction type group „A2“ is assigned to the transaction type „X80“.
„ The new transaction type group A2 references to the period control group A (=Revaluation). This period
control group can be customized according to customer requirements (see next slide).

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 Customizing of depreciation key (Example)

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„ In this example the period control group 001 is assigned to the depreciation key „ZLIN“.
„ The period control of the new period control goups (A, B, C, D) can be customized in the period control
method.
IMG: Asset Accounting Î Depreciation Î Depreciation Key Î Calculation Methods Î Maintain
Period Control Method
„ In the customizing of the period control groups 4 new period controls are provided.
- Revaluation (= period control group A in transaction type group)
- Investment support (= period control group B in transaction type group)
- Unplanned depreciation (= period control group C in transaction type group)
- Write-ups (= period control group D in transaction type group).
„ In this example the period control „11“ (= next month) is defined for the depreciation key „ZLIN“.
A revaluation posting has no impact on the ordinary depreciation of the month the revaluation has been
posted. The effect of a lower basis for depreciation calculation is taken into account the month after the
revaluation posting.

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 Example: New transaction type groups (1/ 2)

New period control „Revaluation“

key 11 = Next month

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„ - acquisition value: 10.000

- useful life: 5 years
- depreciation of the year: 10.000 / 5 = 2.000
„ Posting of a revaluation with a new defined transaction type „X80“ using the transaction type group „A2“.
Period control group „A“ (= Revaluation) is assigned to transaction type group „A2“.
„ The revaluation posting in period 07/ 2006 has no impact on the ordinary depreciation of period 07.
„ Starting with period 08/ 2006 the depreciation of the year is calculated on the lower base value of 7.000.
- base value: 7.000
- useful life: 5 years
- depreciation of the year: 1.4000

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 Example: New transaction type groups (2/ 2)

Period control „Acquisition“

key 01 = Pro rata at period start data

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„ Before mySAP ERP 2005 the new 4 period control groups A, B, C, D are not provided. Thus, a
revaluation posting inherits the period control of the acquisitions.
„ Posting of a revaluation with transaction type „855“ using no explicit period control. The period control 01
of „Acquisitions“ is inherited to transaction type 855.
„ The revaluation posting in period 07/ 2006 is considered in period 07/ 2006.
„ Starting with period 07/ 2006 the depreciation of the year is calculated on the lower base value of 7.000.
- base value: 7.000
- useful life: 5 years
- depreciation of the year: 1.4000

© SAP AG 23
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