SAP_S4HANA_FI_11 August

PERIODIC PROCESSING AND VALUATION

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Effective date 10.08.2021

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 SAP S4HANA FI
PERIODIC PROCESSING AND
VALUATION
 Agenda

01 02 03

Defining Executing Parallel Accounting

Depreciation Programs for in Asset
Areas, Keys, Fiscal Year Accounting
Calculation, and Change and Year-
Posting End Closing in
Asset Accounting
#1 Defining Depreciation Areas,
Keys, Calculation, and Posting

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Periodic Processing Overview
Some of the periodic processing activities are as follows:
● Primary cost planning If you want to plan primary costs
on a cost center basis, you can periodically determine
planned depreciation and interest; pass these costs on to
primary cost planning in the Controlling (CO) system
using a report.
● Investment support Investment support is a subsidy
that a company receives for certain asset investments.
Assets eligible for such a subsidy are marked in the asset
master records with an investment support key. All
specifications for claiming the investment support are
stored in the definition of this key. You can manually post
the implementation of investment support measures for
each individual asset.
● Inflation management Inflation management is
required in countries with high rates of inflation or
deflation.
● Closing Cockpit You can use the Closing Cockpit in FI-
AA to define, schedule, process, and control periodically
recurring activities.
Configure Depreciation Areas
You can identify the depreciation areas in the
system by a two-character numeric key.

The following are the types of valuation for

depreciation areas:
● Define how to post the asset balance sheet
values. These values are equivalent to
acquisitions and production cost (APC),
proportional value adjustments, and
depreciation to the G/L accounts.
● Define the depreciation areas for reporting
reasons only. Depreciation areas show values
and calculate depreciation, but do not post any
values to the G/L accounts.
● Calculate different values in a depreciation
area for a specific purpose (for example, a
balance sheet, cost-accounting, or taxes).
● Define how the values have to be managed
(for example, APC or positive and negative net
book values).
● Define how posting values and depreciation
terms can be transferred to other areas.
Depreciation types for each depreciation area:
The system supports the following depreciation types for each
depreciation area:
● Ordinary depreciation
Ordinary depreciation is the planned reduction in asset value due to
normal wear and tear.
● Special depreciation
Special depreciation represents a purely tax-based type of
depreciation for wear and tear. This form of depreciation allows for
depreciating a percentage of the asset value. This percentage may
be staggered within a tax concession period, without taking the
actual wear and tear on the asset into consideration.
● Unplanned depreciation
Unplanned depreciation concerns unusual circumstances, such as
damage to the asset that led to a permanent reduction in its value.
● Unit-of-production depreciation
Unit-of-production depreciation allows you to take fluctuations in
activity into consideration for the depreciation calculation. The
amount of depreciation is dependent on seasonal usage of the asset
(for example, how many kilometers a truck is driven or how many
units a machine produces).
Depreciation Key – Calculation Methods
You can assign the calculation methods to the
depreciation key using the transaction
AFAMA.
Maintain a depreciation key in Customizing for
Financial Accounting under Asset Accounting
→ Depreciation → Valuation Methods →
Depreciation Key → Maintain Depreciation Key
.

In any calculation methods, the specifications

and parameters are entered that the system
requires to calculate depreciation amounts.
Individual calculation methods are as follows:
● Base method
● Declining-balance method
● Maximum amount method
● Multilevel method
● Period control method
 Calculate Depreciation Values

the system calculates the annual depreciation using the

depreciation key and useful life, other terms (such as
revaluation or imputed interest are also calculated).
The system determines the depreciation start date
using the asset value date and period control method.
Depreciation Calculation on the Basis of Period
Intervals
The logic examines how long the same
reference value (for example, purchase
value or net book value of an asset) is
valid within a fiscal year.
If there is no transaction on the asset,
the depreciation calculation has the
same reference value for one year. In
this case, the calculation uses exactly
one period interval (period 1 to period
12).
If there are transactions, the reference
value changes each time and the
system uses additional period intervals
depending on the period control.

The method for calculating

depreciation (Depreciation Engine: part
of Enterprise Extension EA-FIN)
produces calculations of depreciation
amounts.
Time Dependency of Depreciation Terms
The following parameters can be
changed on a time-dependent
basis:
● Depreciation key
● Useful life (year or period)
● Variable depreciation portion
● Absolute scrap value
● Percentage scrap value
Replacement Values – Index Series
When revaluation or indexing is used in a
depreciation area, you can specify a default
index series for calculating the replacement
value in the asset or asset class.

For each fiscal year, you must specify index

figures for the index series. If the figures are
missing, the system switches to a simulated
annual rate. An indexed revaluation can also
be calculated for accumulated depreciation
and imputed interest if the interest
calculation key is based on replacement
value.

If you want to post to the general ledger,

specify whether you want to post
revaluation of APC only, or also include
depreciation or interest in the depreciation
area.
Depreciation Run
The depreciation run is carried out using
the program FAA_DEPRECIATION_POST.
The program FAA_DEPRECIATION_POST
posts the following:
● Ordinary depreciation, such as book
depreciation and cost-accounting
(imputed) depreciation
● Tax depreciation or allocation and
write-off of reserves due to special tax
depreciation
● Unplanned depreciation or other
manually planned depreciation
● Imputed interest
● Revaluation of APC or accumulated
depreciation
App Fiori: Schedule Asset Accounting
Job  chạy depreciation
Post Depreciation – Settings
Specify Account Assignment Types
The errors can be as follows:
● Incorrect account assignment objects
(for example, a cost center that is locked
in CO)
● Missing account assignment types in
Customizing for FI-AA (You receive the
error message as Account xxxx requires
an assignment to a CO object )
● Missing accounts for depreciation
posting
● Incorrect posting period (related to the
posting interval entered in Customizing)
on the initial screen of the program
FAA_DEPRECIATION_POST
● Missing settings for the depreciation
posting cycle in the depreciation area
To Maintain Settings Required for Running Depreciation
and Specifying Account Assignment Types
1. Configure depreciation areas where you want to post depreciation in Customizing for Financial Accounting) under Asset
Accounting → General Valuation → Depreciation Areas → Define Depreciation Areas .
2. Specify the G/L accounts for depreciation postings in your account determinations in Customizing for Financial
Accounting under Asset Accounting → Integration with General Ledger Accounting → Assign G/L Accounts .
3. Assign the document type for depreciation postings (AF) to the company code in Customizing for Financial Accounting
under Asset Accounting → Integration with General Ledger Accounting → Post Depreciation to General Ledger Accounting →
Specify Document Type for Posting of Depreciation → Specify Document Type for Posting of Depreciation. Note: If you still
use a document number range with external number assignment, see SAP Note 890976.
4. Specify intervals and posting rules per depreciation area in Customizing for Financial Accounting under Asset Accounting
→ Integration with General Ledger Accounting → Post Depreciation to General Ledger Accounting → Specify Intervals and
Posting Rules .
5. Activate account assignment objects in Customizing for Financial Accounting under Asset Accounting → Integration with
General Ledger Accounting → Additional Account Assignment Objects → Activate Account Assignment Objects.
6. Specify the account assignment type for active controlling (CO) account assignment objects. Post cost-accounting
depreciation to the CO objects of the asset master record in Customizing for Financial Accounting under Asset Accounting →
Integration with General Ledger Accounting → Additional Account Assignment Objects → Specify Account Assignment Types
for Account Assignment Objects. You can use the program RAACCOBJ01 and the transaction AACCOBJ to display all active
account assignment objects.
#2 Executing Programs for Fiscal Year
Change and Year-End Closing in Asset
Accounting

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Fiscal Year Change in Asset Accounting (FI-AA)
With the central balance
carryforward program in FI-GL
(transaction FAGLGVTR), the new
year is opened in FI-AA. This allows
you to post to assets in the new
fiscal year. The fiscal year change
program opens new annual value
fields for each asset. You can start
the fiscal year change program in
the last posting period of the current
year.

You can only process a fiscal year

change to a subsequent year if the
previous year is closed for business
in FI-AA.

Worklist asset master

 Year-End Closing in Asset Accounting (FI-AA)
The following are the preparations for year-end
closing in FI-AA:

● After the depreciation lists and asset history

sheet are checked, depreciation is posted.
● If the final result is not satisfactory, you can
carry out the depreciation simulation, make bulk
changes, or make adjustment postings.
● If you change any depreciation values, you must
run depreciation posting again.
The year-end closing program RAJABS00 checks
whether the depreciation is posted
comprehensively or if the assets contain errors or
are incomplete.
If the program does not find any errors, it updates
the last closed fiscal year for each depreciation
area. The report also blocks postings from the
You can go to the year-end closing program by choosing asset area to all closed fiscal years.
Accounting → Financial Accounting → Fixed Assets → Periodic If a closed fiscal year is subsequently released for
Processing → Year-End Closing → Execute from the SAP Easy posting, it can only be closed again after you run
Access screen. the year-end closing program RAJABS00.
Thank You !

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