With SAP Enhancement Package 7, a new functionality is available in Asset

Accounting to manage Parallel Valuations. The following document contains

information about use of this functionality for a new implementation customer. In
OSS Note 1776828 SAP recommends activation of New Asset Accounting for
new customers. To use this solution, prerequisite is the use New GL Accounting
with Ledger Approach. 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.

With the new solution it is now possible to post actual values to different
depreciation areas in real time. There's no need for delta postings and delta
depreciation areas. In the following paragraphs I shall attempt to explain the
configuration steps involved with an example of our implementation project.

Before you actually begin implementation of New AA, take a stock of Global
Settings related to General Ledger, particularly Ledgers and Currencies. This will
help you ascertain the Chart of Depreciation settings required in Asset
Accounting.

E.g. if you have two ledgers for your Company Code (leading and non-leading)
there must be two depreciation areas that post in real time.

Note - This is not applicable to Depreciation areas for Investment Support. Also if
there are multiple currencies there must be a depreciation area for each currency.
This ensures consistencies between General Ledger and Asset Accounting sub
ledger.

In our case we had:

Ledgers:

Leading Ledger for Indian GAAP - 0L

Non Leading Ledger for IFRS - NL

Additional Currencies:
 Group Currency - INR

Hard Currency EURO

Also we had to implement Investment Support, so additional Depreciation areas

were for created for the same. Also we had a separate depreciation area to
Income Tax depreciation. This is what the final Chart of Depreciation looked like

Now if you didn't have Investment Support in scope, area 51, 59, 71 and 75
wouldn't be required. Also if Investment Support accounting is not applicable for
Accounting Principle IFRS, area 71 and 75 wouldn't be required.

Once this is sorted the rest of configuration settings are same as old version and
straight forward:

Business Functions: Activate the following Business Functions:

Transaction Code - SFW5

ENTERPRISE_EXTENSIONS - EA-FIN

ENTERPRISE_BUSINESS_FUNCTIONS -
FIN_AA_PARALLEL_VAL
This will activate a new path and Asset Accounting New menu path will be shown
in SAP IMG:

Copy the chart of depreciation as usual and define your depreciation areas

Assign each depreciation area to a ledger group.

For Depreciation area 60, define depreciation area 01 as Alternate

depreciation area for account determination
 Specify Area type:-Asset Accounting (New)->General Valuation-
>Depreciation Areas->Define Depreciation Areas->Specify Area Type

Specify transfer of APC values:

Here we define the reference depreciation area that provides values to other
depreciation areas. Depreciation areas that don't post in real time must takeover
APC and depreciation values from a reference depreciation area.

Asset Accounting (New)->General Valuation->Depreciation Areas-

>Specify Transfer of APC Values
 Specify Transfer of Depreciation Terms Asset Accounting (New)->General
Valuation->Depreciation Areas->Specify Transfer of Depreciation Terms

Depreciation Area Currencies

Asset Accounting (New)->General Valuation->Currencies->Define

Depreciation Areas for Foreign Currencies

Specify the depreciation areas' currency for your company code(s)

 Activate New Asset Accounting

Menu:- Asset Accounting (New)->New Asset Accounting: Preparation and

Activation->Check Prerequisites for Activating Asset Accounting (New)

Asset Accounting (New)->New Asset Accounting: Preparation and Activation-

>Activate Asset Accounting (New)
 Technical Clearing Account See an example of integrated posting with
technical clearing account at Example 1: Acquisition, Integrated Posting -
Asset Accounting (FI-AA) (New) - SAP Library.

The technical clearing account must be a reconciliation account for assets

and it can't be used in account determination for Asset Accounting (for
example, tables T095, T095B, T095P)

To enable parallel postings to different ledgers system uses a technical

clearing account for Asset acquisition and Investment support postings.
This is required from a technical purpose and the balance of this account is
always zero after each posting.
Rest of the configuration remains unchanged. You define your asset classes,
account determination, depreciation keys etc. is as usual.

An example of Acquisition posting (without investment support)

Integrated posting in different ledgers:

Area 01 - Ledger 0L-

Area 60 - Ledger NL

Please refer the OSS notes:- 1776828.

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