PARALLEL LEDGERS VALUATION IN S/4 HANA NEW ASSETS ACOUNTING

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 accounting, we can set Parallel ledger accounting using depreciations areas

We need to define depreciation area per involved accounting principles,

In our scenario company FR01 a local branch of an international group, company FR01 needs to report financial statements in group accounting principles IFRS and in local GAAP accounting principles.

We defined the Leading ledger ‘0L’ 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

We assigned accounting principles to corresponding ledgers for the company ‘FR01’.

0L Ledger:

2L Ledger:

2. Define Depreciations areas

In our example we created the following 2 depreciation areas:

Depreciation area 1 for IFRS accounting principles (0L Ledger group)

Depreciation area 12 for LG accounting principles (2L Ledger group)

Both areas 1 and 12 posts in real time

Important note:

In New 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

The following screen shots applies for area 1, area 12 have the same accounts assignments

4. Define technical clearing account for integrated assets aquisition:

Below the SAP definition of the integrated aquisition postings available in SAP HELP

You can find this definition also when clicking on the glasses in front of the main customizing neud

“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.”