We live in a dynamic world today that is ever changing. Companies are acquiring other businesses or are being acquired. All of these acquisitions present challenges for all companies involved. One key change that frequently occurs is when the parties involved have different fiscal years. This blog will discuss a change that involves including a 13th month in the transition fiscal year. I will look at the FI side of this first and then close the blog with a look at how it impacts Fixed Assets.

In this example we have the acquired company with a 4-4-5 week cycle for it’s 12 month fiscal year. So instead of closing each period at the end of a calendar month, each period is open 4 weeks, 4 weeks and then 5 weeks. At the end of the 5 week period you repeat the 4-4-5 cycle. The acquired company’s fiscal year closely resembles a calendar year fiscal year. The acquiring company, in contrast, has a fiscal year that runs from February 1 of one year through January of the following year. Because of this January of the new year was combined with December of the prior calendar year just closed to form a one time 12th period that actually includes 2 months.

The changes all begin with transaction code OB29.

What you see here is the original 4-4-5 week fiscal year alignment. The month and day are the actual calendar month and day the period closes. Then you identify which period it is and leaving a 0 in the Year Shift column means that the calendar year and Fiscal Year are the same. When you end on a week instead of the actual month end day you get the oddity in the last row of this table. This table needs to be completed through the end of the calendar year. Since their FY ended on December 26 for 2021 that means you have 5 calendar days to account for so you add the last line.

This last line includes every day after 12/26/2021 through 12/31/2021 but notice it is Period 1 and the +1 means that the Period 1 is part of FY2022(2021 + 1)

Now let’s take a look at the changes that need to be made in this table. I will show you a “new” FY2021 set up along with Fiscal Years 2022 and 2023.

So you go back into OB29 and select the Fiscal Year Variant and then click on Periods.

The new set up for FY2021 now includes the whole month of December in period 12. Now let’s look at FY2022.

Here we see some oddities when a business decides to break down periods by weeks instead of calendar month. Saturday is the day they are using as the end of the week. Here are the keys to notice in this screen print

1. January is actually Part of period 12 for FY2021, remember this was a transition year so FY2021 period 12 includes weeks in both December, 2021 and January, 2022.
2. During the year you have 3 calendar months when the first Saturday of the month is actually the end of the period for the previous month.
3. For 2022 it just happens that Period 11 ends exactly on December 31st. This won’t always be the case.
4. Period 12 2022 is not seen on this screen because period 12 for FY2022 is calendar month January, 2023.

Now let’s look at one more year, FY2023, because it’s not impacted by the transition year of FY2021.

One more time let’s look at the key points in this screen shot.

1. Now you see that January through 01/28/2023 is actually period 12 for FY2022
2. This time we only have 2 calendar months when the first Saturday of the month is the end of one fiscal period while the last Saturday of the month is also the end of a period.
3. Notice Period 11 ends on 12/30/2023 as a result 12/31/2023 is actually the first day of period 12 FY2023.

At this point I’d like to mention how this impacts the period in the MM Module. When you open a period with MMPV in the MM module whatever period is open, it’s linked directly to the same Fiscal Period in FI. For example, documents that are post in January, 2022 post to Period 12, FY2021. So as long as the material movement falls within a legitimate date range it will post to the same Fiscal Year and Fiscal Period as the FI documents.

In the final piece to this I’d like to cover how it impacts Fixed Assets. First and foremost in the year of transition you may need to post “unplanned” depreciation so first make sure you have automatic GL Account assignment set up in t-code AO90 for “Unplanned depreciation account assignment” section.

This is required because posting depreciation with t-code AFAB takes the annual amount of depreciation and divides it by 12 for straight line depreciation. In this example a 13th month was added to FY2021 so I had to account for that extra month of depreciation. To account for the additional depreciation one needs to use t-code ABAA and post “unplanned” depreciation. So it’s a three step process.

1. Execute AFAB for the normal depreciation run
2. Post the unplanned depreciation for the additional fiscal year period
3. Re-run AFAB for the period using the “Repeat” mode.

Here is an asset acquired in period 11 FY2021 that was handled this way at the end of FY2021.

Using AW01N you can view the results. The planned depreciation amount was $277.78 per month. You can see here that Period 11 & 12 depreciation was post as Ordinary Depreciation while January, 2022 Depreciation was post with the ABAA as “unplanned” for the same monthly amount. Now look at the Comparison Tab in AW01N:

The key here is that the Net Book Value is reduced by both the Ordinary Depreciation and the Unplanned amounts so the timing of when the asset will be fully depreciated will stay the same as expected without the Fiscal Year change.

This process has proven to be very successful for when a Fiscal Year Change has involved extending the transitional fiscal year.

The post Change to a new Fiscal Year appeared first on ERP Q&A.

Leased asset remains property of the lessor. They are special form of rented asset.This blog covers how Lessee can handle Leased asset in FI-AA.

This configuration is from the point of view of Lessee. There are two type of leasing.

1. Capital Lease
   
2. Operating Lease

Capital lease is shown in balance sheet and operating lease is treated as expense and not shown in balance sheet. Configuration steps are same for both, the difference arrive while settling the asset. Configuration is covered in this blog.

1. Configuration

1.1 Create Account Determination

SPRO – Financial Accounting (NEW)- Asset Accounting – organization Structure-Asset Classes-Specify Accounting Determination

1.2 Create screen layout

SPRO – Financial Accounting (NEW)- Asset Accounting – organization Structure-Asset Classes- create Screen Layout

1.3 Make number range

SPRO- Financial Accounting (NEW)- Asset Accounting – organization Structure-Asset Classes-define number range interval (AS08)

1.4 Create Asset class (OAOA)

SPRO- Financial Accounting (NEW)- Asset Accounting – Organisation Structure-Asset Classes-Define Asset Class

Make new Asset class and assign account determination, number range and screen layout

1.5 Creation of account –FS00

1.6 Integration of account (AO90)

SPRO-Financial Asset-Asset Accounting-integration with GL account- Assign GL Account

1.7 Determine Depreciation Area (OAYZ)

1.8 Field status for leasing tab in Asset Master

SPRO-Financial Asset-Asset Accounting-Master data- Screen layout- Define Screen layout for Asset master

2. Activate interest calculation

2.1 Depreciation area

Asset Accounting – Integration with the General Ledger – Define How Depreciation Areas Post to General Ledger

2.2 Depreciation Area Posting

Asset Accounting – Integration with the General Ledger – Post depreciation to the General Ledger – Specify Intervals and Posting Rules

2.3 Specify Allowed Depreciation Types for Depreciation Areas- OABZ

Asset Accounting (Lean Implementation) – Organizational structures – Depreciation Areas – Specify Allowed Depreciation Types for Depreciation Areas

3. Creation of Asset Master data and Acquisition process

This is the Brief process of Lease Accounting in FI-AA.

The post Configuration of Lease Accounting appeared first on ERP Q&A.

Introduction:

This post describes to determine the “Additional G/L Accounts for Asset Accounting” Integration with General Ledger, other than AO90 Account Determination.

Integration with general ledger often using the AO90 configuration to determine the G/L Accounts to post the Asset Transactions in Asset Accounting, we use to assign balance sheet accounts, special reserve accounts, and the depreciation accounts.

If we want to use the Additional G/L accounts for Asset Accounting other than AO90 configuration settings, then please follow below step by step configuration guide and test scenario.

Also Read: SAP S/4HANA Financial Accounting Certification Preparation Guide

Scenario: Post the accounting entry with two different G/L Accounts for Asset Retirement by Scrapping

Example:

1. Retirement with Scarping – Normal Configuration pick the G/L Account from AO90 Account determination (Loss made on Asset retirement without revenue)
   
2. Retirement for Physical Verification deficit (New G/L Account from OBYD Configuration)

Case 2 scenario Business perform the Asset Physical verification 6 months or 1 year for each location, if there is any assets or assets qty is lost as per the records then need to retire the assets with different G/L account to identify the total lost amount.

Please follow the below step by step configuration.

Step1: Create the new transaction type for the Asset Physical Verification Deficit retirement.

Path: SPRO -> Financial Accounting -> Asset Accounting -> Transactions -> Retirements -> Define Transaction Types for Retirements

Copy the transaction type 200 and 250 and Create the new transaction types

New Transaction type Z00

Please note after creating the new transaction type for current year, please update Acquisition in the same year, here example I used Z50.

Current Year Physical Verification Retirement Transaction type Z50

Step2: Assign the additional G/L Account for Asset Retirement for Physical Verification.

Transaction code: OBYD,

Click on transaction ANC “Additional accounts for Asset Accounting”

Update the G/L Account with General Modifier

Step 3: Define new posting schemes for Physical Verification Retirement.

SE38: Program RAVCBUZSM

Copy standard Schema “SAP_200_007” and create new schema

Create the new Schema

Select the new schema and click on Characteristic values

Select the Account assignment standard accounts for asset accounting ZIT3 created in step 2 for sequence 90 and save it.

Step4: Assign the new posting schemas to Transaction Types

SM34: VC_T093h01

Click on Maintain

Select the relevant country and click on assignment line items

Assign the new transaction types created in step1 with new schema created step3 and save

Test Scenario1:

Asset Scrapping for Physical verification deficit

Transaction Code: ABAVN

Select the Transaction type Z50 for the current year retirement in the additional details tab

Post the Document

Accounting Entry: G/L Account is picking from the Additional g/l accounts for Asset accounting not from AO90

Display Asset AW01N

Click on the line item to display the accounting document

Scenario 2

Post the standard asset retirement by scrapping with transaction type 250 G/L Account should pick from the AO90 configuration

Accounting entry

Verify the G/L Account its picked up from the AO90

The post Additional G/L accounts for Asset Accounting appeared first on ERP Q&A.