Configuration Guide for IFRS in SAP Fixed Assets Accounting_c

IFRS in SAP Fixed Assets Accounting Business Process Configuration

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EVD Task

Business Process Configuration

EVD Deliverable Name

Configuration document

Sample Document Title

IFRS CONFIGURATION GUIDE

Date

20-04-2011

Revision

V1.0

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1. Table of Contents Contents 1.

Table of Contents .................................................................................................. i

2.

Author ............................................................................................................... 2

3.

Summary ........................................................................................................... 3

4.

Configuration Description ........................................................................................ 4 4.1. Overview of configuration done ........................................................................... 4 4.2. Detailed description of the configuration steps ......................................................... 4 4.2.1. Set up Depreciation Areas within a Chart of Depreciation ...................................... 4 4.2.2. Accounts determination ............................................................................. 13 4.2.3. Asset classes ......................................................................................... 15 4.2.4. Account groups ...................................................................................... 16 4.2.5. Retained earning accounts ......................................................................... 19 4.2.6. Field status groups .................................................................................. 22 4.2.7. General Ledger integration ......................................................................... 26 4.2.8. Evaluation Groups ................................................................................... 29 4.2.9. Financial statements ................................................................................. 31 4.2.10. Transaction types .................................................................................... 33 4.2.11. Screen layout ......................................................................................... 51 4.2.12. Create a multilevel method ......................................................................... 53 4.2.13. Create a depreciation key .......................................................................... 55 4.2.14. Check posting rules for new activated depreciation areas .................................... 57 4.2.15. Activate new depreciation areas in master data ................................................ 59 4.2.16. Change data transfer date .......................................................................... 62 4.3. Additional Information ..................................................................................... 63 4.3.1. Currencies for asset accounting ...................................................................... 63

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2. Author Role

Name

Date

Consultant - Finance and Controlling

Azandossessi Jean-Muriel AZONHOUME

29/04/2011

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3. Summary Provide a brief overview of the processes(or gaps) that are configured. If possible refer to existing gaps or business blueprint documents.

Blueprint or GAP reference

Author

Date

Final/draft

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4. Configuration Description 4.1.

Overview of configuration done

This configuration guide shows the required steps to implement IFRS rules in SAP assets accounting. It provides the information you need to set up or maintain the configuration of this purpose manually.

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4.2.

Detailed description of the configuration steps

4.2.1. Set up Depreciation Areas within a Chart of Depreciation A chart of depreciation is a directory of depreciation areas arranged according to business requirements. Each chart of depreciation contains the rules for the evaluation of assets that are valid in a specific country or economic area. Each company code defined in Asset Accounting must refer to a chart of depreciation.

IMG PATH: Financial Accounting  Asset Accounting  Organizational Structures  Copy Reference Chart of Depreciation/Depreciation Areas

DESCRIPTION: Copy Reference Chart of Depreciation/Depreciation Areas

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To carry out the activity, use the following option: 1. On the Organizational object Chart of depreciation screen; select Copy/Delete Depreciation Areas.

2. On the change View “Define Depreciation Areas”: Overview screen, review the depreciation areas, and delete or add depreciation areas, as required. 3. Choose Save. The chart of depreciation has been created. In “CLIENT NAME” system, we updated the chart of depreciation customizing for “CLIENT COA/CO Depreciation” and “CLIENT COA/CO DEPRECIATION” 01 : Group ( Belgian gaap ) 02 : IFRS 03 : Tax depreciation 04 : Currency 10 : French Gaap 11 : French France ( Dif between 10 and 01 ) 12 : Difference between IFRS and Book 13 : Differenec between tax and Book In “CLIENT COA/CO DEPRECIATION” we had also : (because “CLIENT COA/CO DEPRECIATION” will be changed , the difference will also be changed) 20 : Amortissement dérogatoire : ( Dif between 10 and 03 ) 25 : Tax dépreciation (copy- technical) 26 : Amortissement reintégratoire : ( Dif between 10 and 25 )

Old config

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New config

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The G/L codes mean : 0 – that the area does not post 1- that the area posts to the general ledger in real time 2- that the area only posts to APC and depreciation on periodic basis 3- that he area only posts to depreciation

4.2.2.

Accounts determination

The most important function of an asset class is to link asset master records to their respective general ledger accounts in Financial Accounting. This link is created by the

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account determination key in each asset class. We can assign several asset classes to the same account determination key.

IMG PATH: Financial Accounting  Asset Accounting  Organizational Structures  Asset Classes  Specify Account Determination

DESCRIPTION: Specify Account Determination To 2.

carry out the activity, use one of the following options: IMG path T Code : SM30 with Customizing Object V_T095A_01 On the FI-AA: Account Determination screen, make your entries:

Example : Account Determination

Name for account determination

88000000

Low asset value

In “CLIENT NAME”

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4.2.3.

Asset classes

From an accounting point of view, the asset class is the most important element for structuring fixed assets. Each asset must be assigned to one asset class only. The asset class assigns the assets and their business transactions to the appropriate general ledger accounts. Several asset classes can be assigned to the same account

IMG PATH: Financial Accounting  Asset Accounting  Organizational Structures  Asset Classes  Define Asset Classes

DESCRIPTION: Define Asset classes To carry out the activity, use one of the following options: - IMG parth - Transaction code : OAOA 2. Make the entries on the Change View “Asset Classes”: Overview screen: Example Class

Asset class description

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8800

Low value asset class

Example in “CLIENT NAME”

You can choose the account determination , the layout rule and the number range for your new asset class.

4.2.4.

Account groups

For the asset account determination, new accounts have to be created. They will have different ranges to distinguish them from the others.

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When creating new G/L account, you must specify an account group. The account group determines: 

the interval in which the account number must be



which fields are required and optional entries when creating and changing master records



which fields are suppressed when creating and changing master data.

We create -

IFRS : IFRS accounts 9100000000 FRGP : French gaap accounts - 9200000000

to 9199999999 to 9299999999

IMG PATH: Financial Accounting  General Ledger Accounting G/L Accounts master data  Preparations  Define Account groups

DESCRIPTION: Define account groups 1. To carry out the activity, use one of the following options: IMG path Transaction code : OBD4 Click on the “new entries” button. Add the Chart of accounts , the new account group , the name and the range Save your entries

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4.2.5.

Retained earning accounts

A retained earnings account can be assign to each P&L account by specifying a P&L statement account type in the chart of accounts area of each P&L account. At the end of a fiscal year, the system carries forward the balance of the P&L account to the retained earnings account. We need to define one or more P&L statement account types per chart of accounts and assign them to retained earnings accounts. For IFRS and French gaap, new retained earning accounts have to be created. -

10 Classic retained earning account LO Local retained earnings account FG French gaap retained earning account IF IFRS retained earning account

IMG PATH: Financial Accounting  General Ledger Accounting G/L Accounts master data  Preparations  Define Retained Earnings Account

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DESCRIPTION: Define Retained earnings account

1. To carry out the activity, use one of the following options: - IMG path - Transaction code : OB53 click on the “new entries” button. You can define a P&L statement and associate an account for the balance carried forward. Save your entries

Create the accounts first in the Chart of Account “CLIENT COA/CO Depreciation” with FSP0

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4.2.6.

Field status groups

For the asset account determination, new accounts have to be created. They will use different field status groups to distinguish them from the others ( and control their postings ) .

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IMG PATH: Financial Accounting  accounts receivable and payable Business transactions Outgoing Invoices/Credit Memos Make and Check Document Settings Define Field status variant.

DESCRIPTION: Define Field Status Variants

1. To carry out the activity, use one of the following options: -

IMG path Transaction code :

2. Choose field status variant “CLIENT COA/CO Depreciation” and click on field status group 3. Click on the new entries button and chose a code and a name for your field status. 4. Double click to choose the overview settings of your Field Status

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General data Additional account assignments Materials management Payment transactions Asset Accounting Taxes Foreign payments Consolidation Real estate management Financial assets management Save your entries when you’re done 3 new field status groups will be created -

IFRS : For 91xxxxxxxx accounts FRGP : For 92xxxxxxxx accounts LOC : For 90xxxxxxxx accounts ( was already created for France)

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IFRS AND FRGP have the same settings as LOC

4.2.7. General Ledger integration That customizing activity shows the links between assets accounting and general ledger. From that IMG activity we can set up the accounts where the asset accounting activity will be posted.

IMG PATH: Financial Accounting  Asset Accounting  Integration with the General Ledger  Assign G/L Accounts

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DESCRIPTION: Integration with the General Ledger : Assign G/L

Accounts To carry out the activity, use one of the following options: - IMG path - Transaction code : AO90 2. On the Change View “Chart of Accounts”: Overview screen, select the line whose Chrt/Accts value is “CLIENT COA/CO Depreciation”. 1.

Example

3.

Double-click on the folder Account Determination.

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4.

Starting with the Change View “Account Determination”: Overview screen, a. For each Account determ. row entry in the table below, select the corresponding line on screen, and double-click the Balance Sheet Accounts folder. b. Make the entries shown to the right of the Account determ. value.

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c. Choose Save, enter data for Customizing Request, and go back to the Change View “Account Determination”: Overview screen.

The same thing should be done for - Acquisition : for areas 01 , 02 and 10 - Depreciation : for areas 01 , 02 and 10 Here’s a table with all the required accounts for the maintained areas. First step is to create the accounts with FS00 Excel file is made with all the accounts needed per company code and also an excel is made with all the accounts for the account determination.

Remark: the 9* account may not be created as Reconciliation accounts

4.2.8.

Evaluation Groups

Some codes are internal to the company and haven’t been predefined in SAP. In that case, Sap provides additional fields in the master data that can be use to store the information.

IMG PATH: Financial Accounting  Asset Accounting  Master data  User fields  Define 8-Character Evaluation Groups DESCRIPTION: Define 8-Character Evaluation Groups (to be used

for specific codes) 1. To carry out the activity, use one of the following options: -

IMG path Transaction code : OAV8

2. Click on the new entries button 3. choose a code and a name for the objects of your list

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4. Save your entries

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They will be available in the asset master data.

But because the load file of the assets has grouped more than 1 code, it was inpossible to link 1 code to an asset. So we will not use the evaluation groups

4.2.9.

Financial statements

Since we created new accounts on the G/L that will carry IFRS and French Gaap figures, they need to be foreseen in the financial statement versions. To do so, we will create new financial statement versions including those accounts.

Either account intervals or functional area intervals can be assigned to a financial statement item. The financial statement version can then also be used by the notes to financial statement in the G/L account information system.

IMG PATH: Financial Accounting  General Ledger Accounting Business Transactions Closing Define Financial Statement Versions DESCRIPTION: Define financial statement versions groups

1. To carry out the activity, use one of the following options: - 31 -

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IMG path Transaction code :

2. click on the “new entries” button. 3. Add the financial statement version code, the description , the name, the language and the chart of accounts Save your entries

Click on the “Financial statements items” button . You can now create new some items and assign accounts to them. Save your entries

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A separate configuration manual is made for the financial statement.

4.2.10.

Transaction types

Manual corrections to values, such as are made by postings in Asset Accounting. you can define the transaction types for the manual value corrections. In addition, you can specify that certain transaction types propose only certain depreciation areas for posting.

IMG PATH: Financial Accounting  Asset Accounting  depreciation  Unplanned depreciation  Define transaction types for unplanned depreciation

DESCRIPTION: Define Transaction types for unplanned

depreciation 1. To carry out the activity, use one of the following options:

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IMG path Transaction code : AO78

First you can Define ( a ) transaction type : By copying an existing type Example: ZL4 is a copy of 640 (unplanned depreciation classic type ). At that point, the 2 types have the same customizing and ZL5 is a copy of 650

We will create ZL4 (local only unplanned depreciation prior year acquisitions) ZI4 (IFRS only unplanned depreciation prior year acquisitions) ZF4 (French Gaap only unplanned depreciation prior year acquisitions) ZL5 (local only unplanned depreciation current year acquisitions) ZI5 (IFRS only unplanned depreciation current year acquisitions) ZF5 (French Gaap only unplanned depreciation current year acquisitions)

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Now you can Limit Transaction Types to Depreciation Areas: With the 640 transaction type, you will have access to all the real areas that are configured In the transaction ABAA ( Unplannned depreciation run ) , the system then generates a popup window showing the depreciation that can be posted in the posting transaction. (ABUMN= transfer within company code) If you want to specify that one depreciation areas only should always be posted, you need to set up the limit. The popup window then does not appear in the posting transaction for all the areas.

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

Display for selection ( if selected ) indicates that the pop up will show



Always post ( if selected ) indicates that the area will be posted without showing the pop up window.

DESCRIPTION: Define Transaction types for asset retirement (

scrapping ) 1. To carry out the activity, use one of the following options: -

IMG path : Financial Accounting  Asset Accounting  Transactions

Retirements  Define Transaction Types for Retirements

- Transaction code : AO74 2. First you can Define ( a ) transaction type : By copying an existing type

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The specific transaction types created are customized copies from 200 (default type ).

Description

Impact on Dep. Areas ( only real )

Retirement without revenue

01/02/03/04/10/25

ZFG

Retirement without revenue - French Gaap only Scrap

10

ZIF

Retirement without revenue - IFRS Only Scrap

02

ZWF

Retirement without revenue - Scrap without French G

01/02/03/04/25

ZWI

Retirement without revenue - Scrap without IFRS

01/03/04/10/25

Movement type 200 ( Classic )

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Now you can Limit Transaction Types to Depreciation Areas: With the 200 transaction type, you will post to all the real areas that are configured If you want to specify that one depreciation areas only should always be posted, you need to set up the limit. The popup window then does not appear in the posting transaction for all the areas.

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* Display for selection ( if selected ) indicates that the pop up will

show

* Always post ( if selected ) indicates that the area will be posted

without showing the pop up window. Here we choose to post it directly.

DESCRIPTION: Define Transaction types for asset retirement

(retirement with revenue ) 1. To carry out the activity, use one of the following options:

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-

IMG path : Financial Accounting  Asset Accounting  Transactions

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Transaction code : AO74

Retirements  Define Transaction Types for Retirements

2. First you can Define ( a ) transaction type : By copying an existing type

The specific transaction types created are customized copies from 210 (default type ).

Description

Impact on Dep. Areas ( only real )

Retirement with revenue

01/02/03/04/10/25

YFG

Retirement with revenue - French Gaap only

10

YIF

Retirement with revenue - IFRS Only

02

YWF

Retirement with revenue – without FRGP

01/02/03/04/25

YWI

Retirement with revenue - without IFRS

01/03/04/10/25

Movement type 210 ( Classic )

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Now you can Limit Transaction Types to Depreciation Areas: With the 210 transaction type, you will post to all the real areas that are configured If you want to specify that one depreciation areas only should always be posted, you need to set up the limit. The popup window then does not appear in the posting transaction for all the areas.

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* Display for selection ( if selected ) indicates that the pop up will

show * Always post ( if selected ) indicates that the area will be posted

without showing the pop up window. Here we choose to post it directly.

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4.2.11. Screen layout Screen layout 1000, 2000 and 9000 have to be modified. Transaction AO21

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4.2.12. Create a multilevel method A multilevel method is a code that indicates several information on the depreciation settings. You can set up *The acquisition date *Whether the calculation is done on the remaining life or on the acquisition value ( you can even add a percentage ). The multilevel method created is then assigned to a depreciation key

IMG PATH: Financial Accounting  Asset Accounting  Depreciation  Valuation Methods Depreciation key  Calculation Methods  Define Multilevel methods

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DESCRIPTION: Define Multilevel methods

To carry out the activity, use the following option: IMG path Transaction code : AFAMS First you can Define ( a ) multilevel method by copying an existing one and modifying it. Example: Here we create a multilevel method Z03. The calculation will be based on the remaining life. Select the Acq year, the asset life time, the period, the basevalue calculation ( eg : on acquisition or net book value ) , and the remaining life button. Set your new level Save your new level

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24= net book value Click on remaining life

4.2.13.

Create a depreciation key

The depreciation key (valuation key) controls the valuation of the asset in the particular depreciation areas. The depreciation key consists of the following: 

Calculation method for the automatic calculation of interest, ordinary and special depreciation



Possibly a cutoff value key



Various control indicators

IMG PATH: Financial Accounting  Asset Accounting  Depreciation Valuation methods Depreciation keyMaintain Depreciation DESCRIPTION: Maintain Depreciation Key 1. To carry out the activity, use the following option: - IMG path - Transaction code : AFAMA First you can define the depreciation key by copying an existing one and modifying it. Here we should assign the Z03 multilevel to the depreciation key ZOLI Set your new key ZOLI will be used in all the asset classes for the calculation in dep area 02.

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Save your new level

Change Base method 0007 in 0011

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Change base method 0007 in 0011

4.2.14. areas

Check posting rules for new activated depreciation

The depreciation run period should be set for every area. Normally, it should run on a monthly basis.

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DESCRIPTION: Specify Intervals and Posting Rules 1. To carry out the activity, use the following option : - IMG Path - Transaction code : OAYR 2. Select a company code and double click on “posting rules” 3. Select an area and double click. 4. Choose the posting rule (period) 4. Choose Save. The posting period is now determined

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4.2.15.

Activate new depreciation areas in master data

The depreciation areas that were not posting in the past are not visible in the asset. We need to activate them in the master data so we can see them and change manually their settings if necessary.

Area 02, 03 and 10 will need to be activated before the values upload. 11, 12 and 13 are derived areas and are activated automatically by activating 02, 03 and 10.

MENU PATH: Financial Accounting  Fixed Asset -> Environment -> AFBN New Depreciation Area DESCRIPTION: AFBN – Automatic opening of New Depreciation Area

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1. To carry out the activity, use the following option : - IMG Path - Transaction code : AFBN 2. Select a chart of account 3. Select an depreciation area and execute

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The area is now displayed in the master data

PS : That action will not modify the retired assets valuation tab. It’s only possible for the assets with values. First the depreciation area will have to be activated in the asset class

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4.2.16.

Change data transfer date

This date determines the status of posting to be used for the transfer (posting up to this date will be included in the transfer), not the actual date the data transfer is carried out. This specification also determines whether you want to perform the transfer during the fiscal year (with transfer of posted transactions/depreciation in the current fiscal year) or at the end of the fiscal year (without transactions). If the transfer date is not the last day of the fiscal year (according to the fiscal year variant in FI), the system interprets this as transfer during the fiscal year. The system cannot transfer any historical transactions. It can only transfer cumulative values from the end of the last fiscal year, and the transactions in the current fiscal year (the second is only possible for transfer during the fiscal year).

MENU PATH: Financial Accounting  Fixed Asset -> Asset Data transfer -> Parameters for data transfer – Date specifications- Specify Transfer Date/Last Closed Fiscal Year DESCRIPTION: Specify Transfer Date/Last Closed Fiscal Year 1. To carry out the activity, use the following option : - IMG Path - Transaction code : 2. Select a company 3. Change the asset data transfer date

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4.3. 4.3.1.

Additional Information

Currencies for asset accounting

DESCRIPTION: 1. To carry out the activity, use one of the following options:

MENU PATH: Financial Accounting  Asset accounting -> Valuation -> Currencies  - Define Depreciation Areas for Foreign Currencies DESCRIPTION: Define

Depreciation Areas for Foreign

Currencies Transaction code : OABT Depreciation areas can be managed in any currency in asset accounting. The values from these areas can then be used for group consolidation, or for other analyses. We can depreciation areas that manage asset values in a foreign currency, per company code. For acquisitions, the translation into the foreign currency takes place at the exchange rate current on the posting date . The daily exchange rate is maintained in the productive system in general ledger . Depreciation and proportional value adjustments for asset retirements are calculated directly in the foreign currency.

For “CLIENT NAME”, the Book depreciation Group currency ( 04 ) should always be calculated in EUR for all the company codes.

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