How to post difference expense account for depreciation in difference ledger?

[former_member311833]

Dear Expert,

In our system we have two ledger and two depreciation area. One is for 0L, the other is for 2L

Then I create account determination and set difference expense account for depreciation in depreciation area 1 & 2

When I used AFAB to do depreciation posting test run, the expense account for depreciation is not difference.

My step is :

a) create account determination

b) AO90 set account for account determination

c) OAOA create new asset class

Which step do I have missed? How can I let the difference expense account post in difference ledger?

Best regards,

Eric

[former_member205661 · Accepted solution]

Hi Eric,

I am not sure if I understand your issue correctly, but when you have a ledger scenario the following

will help you create the correct setup in your system:

You should review also the standard ledger scenario logic documentation.

In short, following is a basic configuration of depreciation areas and posting indicators in asset transaction OADB:

                               Posting to G/L         Ledger
Area 01 GAAP                     1                   0L
Area XX IAS                         3                   1L (your ledger code)
Area YY (IAS - GAAP)          6                   1L (your ledger code)

The same you would have to set up for you other ledgers, too.

Be aware that as per ledger scenario logic acquisition/transfer/ retirement postings in area 01 go to all ledgers independently of the setting in OADB (this is not an error). The difference is posted
through the derived area (delta area -> in our example above: Area YY).

Once you have a workable ledger scenario in place the postings should work as per we expect in the assigned non-ledgers for the delta area.

Also same is explained in SAP Note:

1433535 Parallel valuation: Ledger approach

You also find good information regarding posting indicators in SAP Note:

1572318    Meaning of field "Posting in G/L" in  transaction OADB

Hope this helps.

Brigitte

[former_member311833 · Accepted solution]

Dear Brigitte,

Currently, we have set dep. area 01 to 0L and dep. area 02 to 2L.

Then I used T-Code: AO90 set the account in account determine 1883006.

for depreciation area 01, I set the expense account for ordinary depreciation as 51570000.

for depreciation area 02, I set account as 51530000.

I thought when I used AFAB to do depreciation posting run. SAP will post difference expense account for ordinary depreciation. But the account of fi document in ledger group 0L or 2L is the same.

Are there any other configuration settings need to be changed?

Thanks a lot

Best regards,

Eric

[ab_ab · Accepted solution]

Eric,

Please check your settings for depreciation area 02 in 'Define Depreciation Areas'. If you have value '1' in field ABWBER (Different Dep Area), then no matter what you put in AO90 for area 2, the system is going to ignore it. Remove the value '1' and try again. Hope it works

Thanks

Asheesh Bhatia

[former_member311833 · Accepted solution]

Dear Asheesh,

I checked the "Define Depreciation Areas" by T-Code : AO90, Then I found the value of ABWBER

(Different Dep Area) is '1'.

After I change the value of 'Different Depreciation Area' from 1 to space. I got some warning message.

-------------------------------------------------------------------------

Caution: generic values for real depreciation area (refer to long text)

Message no. AC246

Diagnosis

You set up depreciation area 02 so that all types of acquisition values are allowed. However, this only makes sense for derived depreciation areas.

System Response

Warning message. The system allows the setting, but note that it can lead to undesired effects for real depreciation areas.

Procedure

Check the setting.

-------------------------------------------------------------------------

Then I try to use afab to do "depreciation posting run", The account of depreciation area is posted difference account.

I still have two question

a) Is it correct that I change the value of "Different Depreciation Area" from "01" to space?

b) What is the impact for these warning message?

Thanks for your help

Best regards,

Eric

[Former Member · Accepted solution]

Hi,

According to me the impact that it will show of keeping space rather then '1' is, now the Depreciation Area '1' and '2' are independent. They are not linked to each other. So now your settings as done for both depreciation areas will work like AO90. System will pick the GL from AO90 as mentioned in both the depreciation areas. But for rectification of entries kindly also run T-Code ABST2 for rectifying the difference in the leading ledger. As the values will flow to Derive Depreciation after this only i suppose.

Regards,

Malhar.

[ab_ab · Accepted solution]

Hello Eric,

As Malhar said, the only impact is the now you have to maintain 2 sets of configuration. It creates a slight risk in the sense that some one might forget to put accounts for area 2. Just one observation - I see area 2 as 'Tax depreciation'. Generally tax depreciation areas are not posted to. Are you sure you want to post into the Tax dep area.

Malhar - I do not think  ABST2 is needed. Even if they posted values with the 'wrong' depreciation account, ABST2 would show a reconciled value for that account in GL and AA.

Thanks,

Asheesh Bhatia

[former_member311833 · Accepted solution]

Dear Experts,

Thanks for your reply.

I still have a question about the value of field "different depreciation area". When I set space or 2 "tax depreciation" in field "different depreciation area". What is the difference between these two values?

>> Are you sure you want to post into the Tax dep area.

Because our system tax dep area has already posted fi document in ledger 2L. Currently, user want to posted difference expense account of depreciation.

Best regards,

Eric

[ab_ab · Accepted solution]

Eric

The significance of the field 'different depreciation area' is that you can tell the system to look at that different area to determine the accounts posted. That way, you save the effort of re-maintaining the accounts. It not helps save time, but also reduces the account determination error.

A value '2' in area 2 does not really make sense. You are telling the system that - To look up the accounts for area2, refer the accounts in area 2!!!

I notice that you have area 2 = tax depreciation. Are you sure you want to post tax depreciation to NLL? Ledger are generally from a accounting perspective, not for tax purposes. If at all, I wuld suggest a NLL created only for Tax, different from NLL for accounting purposes. But, not knowing your requirements and design, my opinion could be completely wrong

Thanks

Asheesh

[former_member311833 · Accepted solution]

Dear Asheesh,

I'm not sure whether i understand.

If I set the value space in area 2 that mean system will not look up the accounts from any area. The area 2 will get accounts from AO90 account determination area 2

If I set the value '2' in area 2 that mean system will look up the account from itself, just like set the value as space. But set the value '2' in area 2 is not make sense.

Is this correct?

Best regards,

Eric

[Former Member · Accepted solution]

Hi,

According to me your understanding is correct in a way that if that if space is kept in the different depreciation area then system will pick the GL's from AO90 but if any depreciation area is maintained in the different depreciation area then system will pcik AO90 settings fro msuch depreciation area.

It doesn't make any sense regarding assigning depreciation area 2 to different depreciation area as it will work similar to even if no depreciation area is assigned in the different depreciation area.

Regards,

Malhar.

[former_member311833 · Accepted solution]

Dear All,

     Thanks for your help.

Best regards,

Eric

[ab_ab · Accepted solution]

Correct. Just leave the field blank if you want to give area 2 it's own accounts, and then in AO90, maintain accounts for that area.

Thanks

Asheesh