Unilateral asset how does it work

[former_member695716]

Dear Friends

We have a requirement where asset value needs to be capitalized as per US GAAP and expensed out as per Indian GAAP. Our leading ledger is US GAAP. We are on S/4HANA 1909. I have heard that this can be addressed by a functionality called as Unilateral asset but not sure how to configure the same.

Many thanks in advance for guidance on same

[sanilbhandari · Accepted solution]

Hello vinayak1990

You are correct in the sense that unilateral asset does fit in the requirement. However, please be aware that this works only if you are doing integrated asset acquisition using a ledger approach in New Asset Accounting on S/4HANA. In your case, the accounting entry would be as follow

Accounting entry 1 (In All Ledgers)

Technical Clearing Accounting Dr

To Vendor A/c

Accounting Entry 2 (US GAAP) - Ledger specific entry

Asset A/c Dr

To Technical Clearing A/c

Accounting Entry 3 (Indian GAAP) - Ledger specific entry

Expense A/c Dr

To Technical Clearing A/c

The set up help for the same is available on the link below:

https://help.sap.com/viewer/b350210eef6443b6bb3a155840ff905c/6.18.11/en-US/5c371a51533a256ee10000000...

You should also look at the below OSS Note as it explains the parallel accounting for assets in S/4HANA

https://launchpad.support.sap.com/#/notes/2270388

Hope this helps

Thanks & Regards

Sanil Bhandari

[brahms86]

Hello ,

this sounds to me, as if it could be an accounting requirement in the context of US-GAAP/FASB ASC 842 (Lease Accounting). In this case the solution would be to make use of the RE-FX module with its contracts and contract valuation functionality per accounting principle.

In this case the valuation rule takes care of the capitalization of the asset or the posting to expenses.

KR,

Steffen