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In ECC if there are two accounting principle, there will be two depreciation area
1 book depreciation asset year 10 and is 1000
2 tax depreciation asset year 8 and is 800
You need to maintain delta depreciation the difference 200 (APC) values, T.Code: ASKB
Delta depreciation is completely dropped, it its not applicable in s/4hana
No more dependency area 01
Before going to the migration, you need to customize the new asset accounting
Before customization of new asset accounting there are pre check are there
1 where there any errors or there in your old settings
In the T.code: SE38
Check the program: RASFIN_MIGR_PRECHECK, make sure that there is no error should be there.
IN ECC T.Code:AJAB, ABST2 the year end should be complete, AJRW fiscal year change
In S/4 Migrate the chart of Depreciation, in the T.Code: SE38, program: FAA_CHECK_MIG2SFIN
Execute, chart of depreciation, execute
How to Check the Ledger and accounting principle in your company code
In SE16N, Table: FINSC_LD_CMP_AP
Extension ledgers should not assign to depreciation area, only standard ledger assign to depreciation area
In S/4HANA we are assigning the accounting principle to the depreciation area and not the ledger, the ledger are
get assigned by the accounting principle.
In hear I covered following key topics within S/4 HANA 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/4 HANA simplification and we need to be very clear on this new
requirement before starting the new or conversion S/4 HANA project.
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.
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.
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
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.
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.
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.
Here Operational document type will have original document used during entry & while generating accounting principal wise
separate document it would be document type AA.
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).
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.
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.
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)
Step 2:- ABLDT to update Legacy Original Acquisition Value/ Accumulated Depreciation and current year Depreciation Posted.
Step 3: Verify Legacy Asset Planned Value
Note:-
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.
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.
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
Program RAFAB_COPY_AREA
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
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.
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.
FIN_AA_PARALLEL_VAL
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.