Asset Accounting (New)

Part three of three

SAP Simple Finance Add-On 2.0 for SAP Business Suite powered by SAP HANA

March, 2015
Universal Journal Entry - Asset Accounting (New)
Part three of three

At the end of this presentation, you will be able to:

• Outline the features of New Asset Accounting in SAP Accounting
powered by SAP HANA
• List system and business prerequisites of the new architecture
• Describe how to migrate to New Asset Accounting in SAP Accounting
powered by SAP HANA
• Describe the settings needed to be configured for New Asset
Accounting in SAP Accounting powered by SAP HANA
• Describe the new architecture in New Asset Accounting
• Describe how depreciation is calculated and posted

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Agenda (Part one of three)

New Asset Accounting in SAP Accounting powered

by SAP HANA
• Motivation and scope
• New Posting logic
• Migration to SAP Accounting powered by SAP HANA
Fixed Asset Accounting (New)
• Preparation
• Automatic migration – Overview
• Migration from Classic Asset Accounting
• Adaption from New Asset Accounting
• Further topics
• Round up
• Appendix

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Depreciation Run - Overview

The determination of the accumulated depreciation of an asset and the

posting of depreciation expense takes place in the system at different points
in time:
1. Calculate depreciation:
The planned depreciation is determined with each master record change and with
each posting on the asset and updated in the database accordingly.
2. Post depreciation:
The depreciation run adopts the planned asset values and posts them in Financial
Accounting. The posting document is updated in Universal Journal at asset level.

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Depreciation Run – in detail

How does the depreciation run work?

• Planned depreciation is determined and
updated with each asset master record change
Not relevant
and each posting to the asset any more

• Depreciation run posts the planned values

• Journal entry is updated in financials at asset
level
• Period end closing can be performed even if
there are errors on individual assets
• Test run can be performed with restrictions on
assets
• Selection screen is simplified

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Calculate/create planed Depreciation (initial)

• Initial depreciation values need to be calculated

• after migrating the transactional data for all open years in asset accounting
• After balance carry forward to determine planned values for the new fiscal year- this will
be done automatically by the carry forward program

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Further Topics

Year end closing:

• no separate balance carry forward needed in asset accounting
• Planned depreciation will automatically be calculated for the new year after
having performed the balance carry forward
Reseting data (test data):
• Reseting data in asset accounting should only be performed in case the data
will also be reseted in general ledger
How to set up a cost element:
• The manner to set up a balance sheet account (e.g. APC) as cost element has
changed

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Objectives

You should now be able to explain:

• Calculating planned depreciation and posting of depreciation expenses

take place in the system at different points in time
• How the depreciation run works with SAP Accounting powered by SAP
HANA
• That period end closing can be performed even if there are errors on
individual assets
• That there is one report in general ledger which performce the balance
carry forward in general ledger as well as in asset accounting

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Agenda (Part one of three)

New Asset Accounting in SAP Accounting powered

by SAP HANA
• Motivation and scope
• New Posting logic
• Migration to SAP Accounting powered by SAP HANA
Fixed Asset Accounting (New)
• Preparation
• Automatic migration – Overview
• Migration from Classic Asset Accounting
• Adaption from New Asset Accounting
• Further topics
• Round up
• Appendix

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SAP Accounting powered by SAP HANA
Fixed Asset Accounting integrated in Universal Journal Entry

 Fixed Asset Accounting based on Universal Journal.

 No redundancy in data storage Local GAAP
US GAAP
 Reconciliation between G/L and AA is ensured by design IFRS
xxx xxx xxx
o No reconciliation-step in financial close needed anymore.
o All non-statistical items are updated as Universal Journal Entries.
 Even after migration, reporting for previous fiscal years is possible due to compatibility views.
 Transparent assignment of depreciation area to accounting principle
 Depreciation posted with all details: Accumulated depreciation and depreciation cost by asset

Auditability and simplicity

 Independent and complete depreciation areas of equal power
o Simplified Chart of Deprecation: Only one depreciation area per valuation necessary
o no further depreciation areas (Delta areas) necessary to portray a parallel valuation
 New document display: explain the detailed impact of any transaction to the books
 New transactions for ledger group (depreciation area) specific documents
 Flexible account determination

 Simple close, fast close, soft close: Transparency throughout the period
 Asset balances in real time - APC posting run not needed anymore
 Plan values in real-time – updated with every master data change and every asset transaction.
 Elimination of reconciliation steps
 Fast depreciation posting run due to simple processing logic, new data structures and parallel processing
 Navigation and drilldown per accounting principle
 Posting to different periods possible (restriction: beginning/end of FY needs to be equal)

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Questions?

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Agenda (Part three of three)

New Asset Accounting in SAP Accounting powered

by SAP HANA
• Motivation and out of scope
• New Posting logic
• Migration to SAP Accounting powered by SAP HANA Fixed Asset
Accounting (New)
• Further topics
• Round-up

• Appendix
• Motivation and scope
• New Posting logic
• Migration to SAP Accounting powered by SAP HANA Fixed
Asset Accounting (New)
• Migration/Adaption from Classic Asset Accounting
• Further Topics

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Depreciation Run

Smoothing not necessary (and available) any more

Not relevant
any more

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Depreciation Run

Former IMG activity Reset posted depreciation is obsolete due to redesign of

depreciation run

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Balance carry forward

Former menu structure: New menu structure:

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 Cost Element for balance sheet accounts

 to monitor direct capitalizations to assets in cost

accounting with regard to budget values,
available values and commitments you need to
set up the APC account as a cost element

 Set up APC accounts also for parallel valuation:

you have to deactivate message KI098 in case
you are using
 The ledger approach and have set up different
APC accounts for parallel valuation
 The account approach: accounts for parallel
valuation

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Cost Element for balance sheet accounts

 To set up a balance sheet account as a cost

element the following need to apply:
 Balance sheet account
 reconcilation account for assets

 => select checkbox Apply Acct Assignments

Statistically in Fixed Asset Acct / Material Acct
(cost element category 90 for primary cost
elements)

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