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Parallel ledger management
in SAP Fixed Assets module.
Table of contents
1 Background
2
Changes
in G/L account determination for
3
US-GAAP ledger (2L).
Table of contents
1 Background
2
Changes
in G/L account determination for
3
US-GAAP ledger (2L).
Background
To give an answer to the different accounting criteria and valuations (Corporate, IAS,
USGAAP, etc) that may be required in Abengoa companies for presenting financial
statements, in SAP we use function Management of parallel account books.
According to this solution, within Abengoa model, all companies must have at least
four ledgers activated: the so-called main book (0L) and three more, with the
following definition:
0L
Main ledger
1L
IAS ledger
2L
US-GAAP ledger
3L
Abengoa (PIC)
Local entities
Local ledger
All companies must register the different transactions as per Abengoas accounting
regulations and, depending on the country where the company is established, they
must keep at least one local ledger (generally, ledger 3L and 2L in companies from
the United States).
Thus, the reference local ledger will contain all individual ledger transactions
registered and also a number of adjustments, either manual or automatic, necessary
for getting some financial statements consistent with the local regulations of each
Background
Daily postings will always be carried out in the main ledger according to corporate
accounting technique and valuation criteria. The system always treats additional
ledgers as complete ones, i.e., all daily postings with no differences planned in the
system are also posted in the main ledger and in the rest of ledgers of the company
(e.g. purchase invoices, sale invoices, payments, collections, etc).
Valuation adjustments specific to each regulation will be posted only in the specific
ledger corresponding to that regulation. These adjustments will generally be done
automatically in the case of the valuation of assets (depreciations), the valuation in
foreign currencies, etc. The rest of adjustments can be made manually.
Background
Manual (e.g., provision and accrual adjustments, etc). They will be generally
registered through transactions FB50L or FB01L and you must specify a ledger
group:
Automatic. These adjustments must be set in the system. They will generally
be mass processes where the system makes automatic postings and includes a
valuation adjustment in the corresponding ledger.
Background
Examples of ledger specific automatic adjustments:
In this document, we focus on this last case (ledger dependent fixed asset
transactions).
Table of contents
1 Background
2
Changes
in G/L account determination for
3
US-GAAP ledger (2L).
Table of contents
1 Background
2
Changes
in G/L account determination for
3
US-GAAP ledger (2L).
10
Until now, all valuation areas in SAP Asset Management had the same GL
account determination. This means all the accounts were the same for all ledgers
in all operations (capitalizations, depreciation posts, retirements, etc.) because
all areas were configured the same way.
Now, we will have independent G/L account determination for each ledger. This
will help to cover some PIC requirements in SAP . For example, some kind of
tangible assets for US-GAAP has to be intangible for Abengoas PIC. This is the
case of concessions in some Solar companies.
In SAP Asset Management we maintain different valuation areas, mainly used for
identify this valuation differences. For example, 01 area covers PIC accounting
principles and is triggered to 0L ledger, while 03 area covers US-GAAP (ledger
2L).
So, in order to cover some special accounting requirements, we have to make
both 01 and 03 valuation areas independent in asset management. This implies
that also the account determination has to be independent.
Besides that G/L account differences treatment per ledger, we could even manage different
useful lives in 01 and 03 areas -0L and 2L ledgers-):
This two different facts (alternative accounts determination and the possibility of having
different useful lives in ledger 0L and 2L) affects the way SAP makes all the postings for the
asset operations.
Please note that the system uses an auxiliary account (always ending in L) to make an
adjustment in 2L ledger. In the previous example the account is basically the same (because
the asset acts the same way in both ledgers) but in the case of some kind of concessions
the account could be a different one (usually an intangible one for 0L and tangible for 2L).
Following we show two examples.
Case 1: intangible asset (Software). Same account for PIC and US-GAAP:
Ledger
Group =
blanks
Ledger
Group =
2L
Case 2: intangible asset (Concession). Different account for PIC and US-GAAP:
Ledger
Group =
blanks
Ledger
Group =
2L
In this case the system is going to post (automatically) the same adjustment buy using a
proper account for US-GAAP (in this example a tangible account). This way, from US-GAAP
accounting point of view, the capitalization is made by mean of a tangible account.
For this kind of assets we are going to create new asset classes.
This new account determination for 2L ledger implies that we now have to include L
accounts in any balance report in order to analyze financial statements for assets. For
example if we want to show line items for industrial buildings capitalizations in US-GAAP
ledger, we need to include all 211* accounts:
FAGLL03 transaction
Table of contents
1 Background
2
Changes
in G/L account determination for
3
US-GAAP ledger (2L).
18
Run in real mode. To run in real mode, the same as with transaction AFAB, background
processing is necessary. To do so, press on menu Program Run with background
processing:
Log report. In this example we dont have any errors for this execution.
23