28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs Community ‘Aska Question Write a Blog Post i Product Information g$ Ihsen ABROUG April, 2020 Sminute read PARALLEL LEDGERS VALUATION IN S/4 HANA NEW ASSETS ACOUNTING Hi RSS feed Like 12 Likes 3,652 Views 10 Comments. Using the parallel ledger, companies can set parallel valuation in different accounting principles ‘Typically, a local company that belongs to a group needs to follow both local and group accounting principles In Assets account ig, we can set Parallel ledger accounting using depreciations areas We need to define depreciation area per involved accounting principles, In our scenario company FRO1a local branch of an international group, company FRO1 needs to report financial statements in group accounting principles IFRS and in local GAAP accounting principles. We defined the Leading ledger ‘OL’ for IFRS and non leading ledger ‘2L’ for LG accounting principles. Let's see the major customizing steps and a process flow to demonstrate the power of the ledger approach in parallel valuation in assets accounting. 1. Define settings for ledgers hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! 2128-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs °F sents (DEL BIB [i G8 fara vee age pe ane a eninge peeing ae a a ateosion Ledger » Prediction a. OL ntension Ledger + Prediction = stension Uedger ~ Prediction e.° QL We assigned accounting principles to corresponding ledgers for the company ‘FROI. + OL Ledger: Leading Ledger (IFRS) ge + 2L Ledger: hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting!28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs Change View "Accounting Principles for Ledger and Company Code": Overv © New ents (1) ES) ER [Bai sian Table views rn a ere eee) Company Code RO sos [Bical curency Conversion Setting (Bicurency Conversion Stings for Cx + [Bicompany Code Settings forthe [Bp Acourtng Princes for Lig Ac=unting Pincpls fr Ledger and Company Code ‘Accounting Principle Name/Descrption of Accounting rncple 2. Define Depreciations areas In our example we created the following 2 depreciation areas: + Depreciation area 1 for IFRS accounting principles (OL Ledger group) Change View "Define Depreciation Areas": Details 9D PARE = ee wort ea FR) ook denecaton = | Define Depreciation areas esl Onpreciation Ares = ‘Accounting Principle EER] International Financtal Reporting Standards Sipe sper cre [OE kanng edger FRE) ——— ar a Posting inthe General Ledger (Cares Does Not Post ‘Carea Posts Depreciation Only + Depreciation area 12 for LG accounting principles (2L Ledger group) hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! aan28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs 2 DRE OBA cworecat acs BB} (soo onrecacon FIRES Caren Post Deprection Only Both areas 1 and 12 posts in real time Important note: InNew Assts accounting, the delta depreciation area is no longer needed, the system posts in real time to both ledgers. 3. Assign GL Accounts In this step we need to assign GL accounts for both depreciations areas, 1 and 12 We used the same accounts for both areas as we are using separate ledgers for both areas ems ete eA a ee SAORERE Chart of Acts RR) arenes rion. crt of scents hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! an28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs The following screen shots applies for area 1, area 12 have the same accounts assignments 9OOG8 Change View "Balance Sheet Accounts”: Details ctoraces ft ATION Chr farts secant tem, (gQ0B | Fre an rs rae = took peton a eT iE | sutsnac ane 210100) Ger nataten acetone 710100) Gert nten Con er: pn he 771000 | Supa sit eee 471000 | seyeeeoie sete tom etd angen 173000 | siya acut Avni tm post aT Los don Ab Ratt wo Reve erse20 | oss ise anes tel et es ae 675200 | make of amet con fom ote BisccourtDeteiraton Bispecal Reserves Change View "Depreciation": Details SooBE Diag Stuctire , Bice of counts Catt Aas 835 |_sypswemgmecnenrnceasriow chat of exounts econ dete, 30000 | Fats ard figs Deprec. area p ‘Book depreciation Ctcnary desrdation account asgrent ep. cfr enna deeeten 261810 Damen of gene Expense account for onary depreet 661120 Tangles depredet xpeseaccourt fox ot dep sow 0 661120 Tangblsdeprecat Revenue fom wrteup on rd.deprec. 781120 Tangles deprecat 4. Define technical clearing account for integrated assets aquisition: Below the SAP definition of the integrated aquisition postings available in SAP HELP hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! 82128-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs You can find this definition also when clicking on the glasses in front of the main customizing neud Eom rrn ving anet oti ota nse enon ope pt od nn pat + jan eng el Coe kot een a a a aig pn abst fede cary eer oad a SORBENT ARs rau noes eget cook 3 Sa eo eee et vioepa ase angntons Pra mosnpapac jon pre a spec 5 Se ea nth yt at a cre crac eg dono an 2 a rg ir ce ear cre conc Senn scons gaphn eat thesaurus ran oe cote nats or 1 Rebmercrmmaen soles ae hebuuoa nos ek Bas hoas oth hana sae eee ha bane ‘ener mt en mc mae ny at pa He ty in. Dh geet a cmt rot a ts pede i em we cig wt owe row ons mt as suaten Yaar os ass mang Sen aes Sch Otten cheeses seen e Reger [3 @ sen 2 era avin i eng at tan ec Gy het oS eon 0 oie Yeon Sr ar an ire Tring Tar era eT ec oe [i Srey sang trte Pg I ang risSune eto etc nate [BQ sap ops nt hoe apa [E8@ ancy rn nee omc ae po 11)” Mircmremorescoes! ae eens D sau 0 7 wena ns & fon 3 Car 5 “For an integrated asset acquisition posting, the system divides the business transaction into an operational part and a valuating part: + For the operational part (vendor invoice), 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 for each accounting principle.” thew enttes (TES 9 EB. ER es Cai 5. Specify alternative document type for the valuation part of the posting hitpss?blogssap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! eat28-11-2020, posting Asset aquisition PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs The derived document type is for the valuation posting created at the same moment of vendor invoice when Detived Doc. Type a 6. Determine Depreciations Areas in Asset Class Select Asset class 3000 VORRRE [eset Class Doseretion o Real ectate Ss ullinge ‘Assets under conection ‘sofoares 3 yrs Industry Land Inausty Bulag hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! 72128-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs POR RTE Dialog structure Asset Cass Fixture and ftings om Seti MMM seo oer cee pa Dep. Wea Doky Use Per Index bayou) | (Eleook deprec. O ume 0 1000 * (02 Tax dep. a a 04m ted a ook eo ce 1000 15Tax bal.sht, a 20Costace. 4 S0¢roup FRE a 1000 Si.¢rcup Uso a 000 S2enben(eeu) a sooo > —> Deactivate all depreaciations areas except 01 and 12 areas —> Set the usefull life 2 years for depreciation area 01 and 4 years for depreciation area 12 7. Business Scenario for Parallel Ledger Valuation The company FRO1 needs to maintain accounting and reporting for Assets in both group and local accounting principles, In this scénario will process the following flow and track accounting posting and reporting in both acct principles Create an asset, Post acquisition, Run depreciation, post retirement 71 Create asset Create asset for Fixture and fitting (class 3000) with straight line depreciation method for depreciation area 1 and depreciations area 12 + In Class 3000 for Area 1, the useful life is 2 years, + In Class 3000 for Area 12, the useful life is 4 year Transaction: ASOL hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! et28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs 2) LB Asset values Recalculate values Asset ek] {sen ASSET paral valuton deme 2 ss JBODOR rece ac ings company code [a _diGerbun| Time-dependent | Assignments | Origin_| Net Worth Tax | Deprec. Areas |General date Description Thsen ASSET paralal valuation demo 2 {fal ‘heen ASSET paral valuation demo 2 ‘Acct determination (panes Foctures and fitings stmt ine be —__] EDL} Asset values Recalculate values asset 30000000001 | [o {heen ASSET paralial valuation deme Css 3000 Fcture and fltings Company Code FROL ___Gene..| Time-dependent | Assignments | Origin | Net Worth Tax | (Dapete Areas] | Valuation ] Deact A... Deprecation area Key (Usauifa} Prd “opep Start index 2 Miibcomcepmes tne a ie (a8 axvonve020) 72 Asset Aquisition Asset acquisition for 2400 Euros hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting!28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs ‘Transaction: F-90 Document Header Info 04.04.2020 Document type: ** Company Code: FRO1 Accounting Principle: Local Gf 0404-2020 Period: 04 FecalYeer, 2020 Compan eR ae SUT Line items Type Period Ledger Grp Ref. doc. ~ DocumentNo” “Item PK Bus Segment Profit Ctr G/L Acc Short Text = Amount Crey Cost Ctr Order WBS Elem. a sooo: $9007 38 {01110 Guy caer Acoun 2.40000 ER ‘ 200m doves esootrooce w000| 200.0 UR ‘ston = 900 en ai ‘pmol 70 cect oo osnocooot2onc0 “240nc0 EUR 4 275 cot does emnotrod: 000) 230000: EUR soon. Jon eon + Operational part (vendor invoice) %©_| Display Document: General Ledger View FBS Siowinycureny ety Yor ote Laie | Data Entry View a i a = ea IE 7 Document type - KRY Vendor mci = == Fescavear 2020) Pesto 4 pases: [Pesuvar Oabe = SERGE Sees) eee lai ae ae |. ee ee ce ae rs ao + Valuating part (asset posting with capitalization of the asset) hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! sot28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs {2S bowie crmey ey ven foe ner Decmert unter [s0000008 coro Gia fe20 coamertoen [04.04.2020] renga ta a] a ames coneey an Te Sat Oo tweens [oi] 27% ouou Soe anette! cao eo) yao ea one ‘mon peng sres ——e oS crated ‘reisers0 | ey owe [es.o0.2020] _tmestomy 73 Asset Depreciation Run Transaction: AFAB Posting for the first 5 periods of 2020. Asset explorer for IFRS (OL) |: ASSO EOC ataatatattattat eat IS SS IS SS LSI 2 8) 8 i E12 Book depreciation no Posted dep. values Book depreciation value Facal yor tat) Change Posted valine icy (GUsccre Nv. / AUTOVER CISTRIBUTFRO ‘g/t Account WP Caner! Inetalations- Organization EFRO Depreciation posted/planned Sintie Salus Par Ord, Dap. *Upind Dep. # Reserves *Revaunt. Cy hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! wer28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs -> Posted depreciation value 500,00 Euos for ledger “OL” for 5 periods (100,00 Euros per period). Depreciation Fl document posted to Ledger OL: 1B time Coie — oe iene orn aca =e —- Pa bates moet tne 3509-2059 3508 30H Mee meet ne [51-05-7020] ea ee a | rutin (31.05.2020) ens mm Tas tt oa fener =] rong yt 08 / [3020] aren | actin png | erst) 00000000059R0:3020 | soya [FG yO 04.04.2020] teetemy ——_‘[z0e03112) SOOM ne nena § eat So Gino Tantescrpecs 510 Asset explorer for Local GAAP (2L) Aba mame [Asset FRot-so0000ose02/0000. ‘eal em [4 J2020[ >] Depreciation Areas IFRS International Financ , FOL Book depreciation _<( Penned vali “comparisons | Porameters =LG Local GAAP [Depreciation pasted/planned Status Sus Per rd Dep hd ep Rees Reva Cy Food 5 25000000 000000 EUR hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! rat28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs -> Posted depreciation value 250,00 Euros for ledger “2L" for 5 periods (50,00 Euros per period). Depreciation FI document posted to Ledger 2L: 8 fiw cms masa ES cnamentumoe [3990000000] cmc [rrai] Fam cope momerons ——_(31.05-2020) gig 3108-2080] Pot acted oe on | Tete 0 soe (ones “ne te 74 Asset Retirement Asset retirement for a sale value of 2000 Euros Transaction: ABAON hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! sa28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs ‘Company Code eo ERM (Az ws) spat] Massage Te (001 CTR PFRI/10E581 belongs to business area 510, not 0001 002 Business area 0001 changed to 510 ‘003 CTR PFR1/10E580 belongs to business area 510, not 0001 = (004 Asset transaction was posted with document no. FROL reaonge (005 Asset transaction was posted with document no, FRO re nt BRB Gprtine ttems { }change company code |[ifi)Multiple assets Addit. Asset Account Assignment [3 FROL sos Posting to IFRS acct principles (Ledger OL) -> 100 Euros gain for OL ledger Transact Amount Acquisition 2400, Depreciation 500- Sale 2000 hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! saz28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs (©) Display Document: Data Entry View 1 QS Sony carrey oer Lane vw Data Ey Va Document Cate 04.04.2020 PotngOate 04.04.2020] Pato a | mount Cuency Order cost cone Text Prot center ‘2000 EUR dase etree be 200009, euR soese: eet tferert po 106580 Faoinos2 Ace temrt po FROGROA2 ‘Transactions ‘Tet ‘Docu Assetvloate = ISSR pe Tnsaction Tyre Nara +01, Deer oy = RAERER. «css A 8000002 04.04.2129 240000 150. Acquistion rom an alte company ono AR 000 060000 Asset Retirements M¢PWGS VER OT BSG) Sits Pm sions Report date: 31.12.2020 agoet nat ston: 04.04.2020 east fvty Bate Text. * " rey Soetaint ype Reference ont 808 : . . = sceoeooea oo 042020 shen ser partlal vention Gms 2 2ato,0o 808,00 908,00 a 51.062920 Twn SSE parla solonton Sms 2 2a 00 1.0 0,00 S01000) 04.04.2120 Aaset retirement parallel vl 2.400 00- smn,0 0 sk 6.200 260 2a, oto “io.c0 auto Posting to LG acct principles (Ledger 2L) => 150 Euros Loss for ledger 2L hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! 152ae.s-2000 Acquisition 2400 Depreciation 250 Sale 2000 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs [_) Display Document: Data Entry View PE QS Ferisrey curency cereal edger view Gyrasset Accounting Data Ey Ve Decunent Number | $930000007| Company Cade FROL Fiscal Yer 2020 Decumen Date 04.04.2020, Peng Date 04.04.2020) Paed [a] felencce (cose-Comp.e cwey ree a | Sarin SORE Tom Key S Acount Destin Bish © amount Crerey Orr Cost Center Tat Prot eta 175 216100 osoo00o0002 0000 ot 2.40000 EUR Asst ettemant 270 261810 0300000020000 ot 25090 EUR Asa eee 92 340 75200 Bok vale of asset sto 106581 Asaretemant pa S0E560 40 6750 (GSSORPTINGBIE] 510 eh 10#S80 Astrea pa 108580 a Transactions Tet Document AssetvaDate = Transaction Type Name 201d. Cry = =a cn 5000002 04042020 50 Acusten fom an fated comp. 0,00 EUR 00000000 hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! ret26-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs: Deport dates 31.12.2020 Aaser Retscenents - I [= 200000000%2 9 04.08.2020 thaen agget pazalial vs 91:06:2020 Thaen ASSET parallal valu 22000, 00 380,00- 0,00 => In IFRS Depreci loss ion area we have a gain of 100 Euros and in the LG depreciation area we have 150 Euros Using the parallel ledgers OL and 2L, we are able to run parallel valuation according to different accounting principles Please feel free to comment Best Regards Ihsen ABROUG. hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! wet28-11-2020, PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs Alert Moderato Assigned tags FIN Asset Accounting | FINGeneralLedger 1 SAP Asset Lifecycle Accounting | SAPS/4HANAFinance | SAP S/4HANA Finance for group reporting. | View more... 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Mar 18, 2012 ‘SAP $/4 HANA 1809 - new asset acounting - problem of By Sébastien Mayec , Jul 24, 2019 10 Comments You must be Logged on to comment or reply to a post. § rosin carat ‘April 10, 2020 at 9:41 am ‘Awesome blog with a great level of details, will refer anyone asking about parallel ledgers with FA to here. hitpsiblogssap.com2020/04/08/paralledgers-valuationin-s-4-hana-new-assets-acounting! sa28-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs ‘Thanks a lot for your efforts, I know how much effort that takes. This blog will be here after 10 years and people will still learn from it , please keep posting § inser asrous | Post author Api! 10, 2020 at 7:20 pm Thank you Abdullah Regards Ihsen Q TALHA KHAN April 13, 2020 at 6:51 pm Very informative and detailed explanation. Excellent Blog. g Georgios Agagiotis April 14,2020 at 5:49 am Great work, Many Thanks, Q dure: sairam Naraharisetty ‘pr 14, 2020 at 1:09 pm Excellent and very much helpful hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! s9228-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs g VENKATESH BHANDARI April 14, 2020 at 651 pm Nicely articulated. one can understand better on parallel ledgers. Great effort. Thanks @ ‘shore kamarthapu Apri 5, 2020 a 9:32 am Good Information Ihsen ABROUG, Q -2eadeesh Gundachary April 15, 2020 at 8:53 pm Very Well explained, Great work. e kotesh rao May 14, 2020 at 12:36 pm Very good blog and detailed explanation ‘Thanks for sharing & | wish you keep posted nice blogs. @ Feiasernar andey July 16,2020 at 651 am hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! 2012128-11-2020 PARALLEL LEDGERS VALUATION IN Sid HANA NEW ASSETS ACOUNTING | SAP Blogs Simple and clear explanation But It would be ideal to have local GAAP as leading ledger (LO) since all the reporting should be done at Local GAAP. Find us on Privacy Terms of Use Legal Disclosure Copyright Trademark Cookie Voorkeursinstellingen Newsletter Support hitpsublogs sap.com2020/04/08/paralledgers-aluatonin-s-4-hana-newassets-acounting! 228