Impact of asset subledger and general ledger not balancing

[Former Member]

Hi all,

My client went live with assets earlier this year and has been using it in production since then.

It was recently discovered that the subledger and general ledger accounts do not tie! Mostly, it is a few pennies in Local Currency but much larger amounts in Group Currency.

I have identified the cause - legacy assets in the subledger were loaded with capitalization dates from 2009 - 2014, and the exchange rate used was based on the capitalization date. The document posted in the GL however, was posted on 12/31/2014 so it used the exchange rate as of that date. This is why Local Currency essentially ties (except a few pennies here and there) but Group Currency does not.

My question is - What is the actual impact of having differences in GL vs Subledger? Like I mentioned, the client has been operating this way since the beginning of the year and has been able to complete all business transactions without issues (depreciation, acquisitions, etc)

Secondly, what is the best way to correct this given the current productive state of Assets in the production system?

Thanks to all!

[former_member182098 · Accepted solution]

To adjust the GL balances due to foreign exchange differences, use FBB1 transaction code.

To adjust the balance on the sub-ledge ABF1

Refer following notes:

Note 382548 - Composite note reconciliation Asset Accounting

Note 124509 - Analysis of errors listed by reconciliation program

Note 69225 - Reconciliation difference financial/asset accounting

Check note 69225 to understand how to use ABF1.

[Former Member · Accepted solution]

Thank you Ravi. I will review the notes for more information.

Is there any system impact if we just leave the differences between asset GL and Subledger as is? What's the worst that could potentially happen?

[former_member182098 · Accepted solution]

Hi Jay,

There is no system impact, but you are carrying your books of accounts with wrong information, which may not be good and the auditors may question at some point. Therefore, it is always advised to adjust any such differences once for all.

Kind Regards,

Ravi