Here we define the reference depreciation area that provides values to other depreciation areas. For Depreciation area 60, define depreciation area 01 as Alternate depreciation area for account determinationĪsset Accounting (New)->General Valuation->Depreciation Areas->Define Depreciation Areas->Specify Area TypeĪsset Accounting (New)->General Valuation->Depreciation Areas->Specify Transfer of APC Values.Assign each depreciation area to a ledger group.Copy the chart of depreciation as usual and define your depreciation areas.This will activate a new path in SAP IMG: Business Functions: Activate the following Business Functions:.

Once this is sorted the rest of configuration settings are straight forward: Also if Investment Support accounting is not applicable for Accounting Principle IFRS, area 71 and 75 wouldn’t be required. Now if you didn’t have Investment Support in scope, area 51, 59, 71 and 75 wouldn’t be required. This is what the final Chart of Depreciation looked like: Also had a separate depreciation area to Income Tax depreciation. This ensures consistencies between General Ledger and Asset Accounting sub ledger.Īlso we had to implement Investment Support, so additional Depreciation areas were for created for the same. Also if there are multiple currencies there must be a depreciation area for each currency. Note – This is not applicable to Depreciation areas for Investment Support. if you have two ledgers for your Company Code (leading and non leading) there must be two depreciation areas that post in real time. This will help you ascertain the Chart of Depreciation settings required in Asset Accounting.Į.g.

In the following paragraphs I shall attempt to explain the configuration steps involved with an example of our implementation project.īefore you actually begin implementation of New AA, take a stock of Global Settings related to General Ledger, particularly Ledgers and Currencies. There’s no need for delta postings and delta depreciation areas. With the new solution it is now possible to post actual values to different depreciation areas in real time. Prior to New Asset Accounting, to manage parallel valuations one had to use delta depreciation areas, as only one depreciation area (01) could post to the General Ledger in real time. To use this solution, prerequisite is the use New GL Accounting with Ledger Approach.

In OSS Note 1776828 SAP recommends activation of New Asset Accounting for new customers. The following document contains information about use of this functionality for a new implementation customer. With SAP Enhancement Package 7, a new functionality is available in Asset Accounting to manage Parallel Valuations.

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