Fixed Assets Conversion during fiscal year

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I am working on fixed assets during fiscal year and I am in fact doing FIAA conversion for the first time. So Gurus, I would appreciate your guidance. I have written the steps from my knowledge that I have jotted the steps after doing some search, and validate the steps and the most important the journal entries.

The fiscal year is April to March 31st, and the planned take over is during fiscal year ie.1st Octoberu2019 2010.

Steps for FIAA transfer of assets during fiscal year

1.Set Company Code Status to 2 test co code.

2.Specify Sequence of Depreciation Areas

3.Specify Transfer Date/Last Closed Fiscal Year. Is this required or not I am not sure.

4.Specify Last Period Posted in Prv. System (Transf. During FY)

Example:

XYZ inc is going live on 1st October 2010. In this case we specify that depreciati posted up to 30th September 2010 in the previous (legacy) system.

Step1

Update the takeover date as 30th September 2010

Step2

The FYear 2010 and period 6 field are now available for entry since in the asset transfer will happen on 30.09.2010

5.Data Transfer Fixed Assets

In this step the legacy data file should be uploaded. The data should be as per AS91 the file layout. The Acquisition value and the accumulated depreciation per depreciation area from the legacy will be brought into FIAA.

6.The values entered in the asset masters will not update reconciliation accounts in the GL., so enter the GL balances along with the GL Balances upload. Use the t code to set/reset the recon acct by using t code OAMK. The fixed assets balances should be as per the financial statement as at Sept 30th 2010.

1) debit Assets account 2000,

2) credit Acc depreciation account 1500, and

3) credit conversion GL Open balances 500

7.After the master records and balances are uploaded in step 5 then run reports assets number list, assets by class check the reports for the accuracy

8.Reconcile the FIAA and GL Balances in the fixed assets Run the t code ABST2 (inconsistency between FIGL and FIAA)

Asset value original 2000, Acc depr 1500 as per the GL Open balances

Asset value original 1700, Acc depr 1300 as per the upload

9.Pass a journal entry using t code OASV. For the difference noticed from the ABST2 in step 8, the journal entry is

1) debit Assets account ( 2000 less 1700)= 300,

2) credit Acc depreciation account (1500less1300) = 200, and

3) credit conversion FIAA 500

10.Set or Reset Reconciliation Accounts using t code OAMK

11.Pass the journal entries to the P&L accounts in the current year. The journal entries will be for periods April to Sept 2010 i.e. 01 to 06 periods.

Now comes the serious stuff and I want to know exactly how do I bring in these transaction and how the journal entries are passed?

u2022How do I handle the current year depreciation in the P&L account and in Balance sheet? Is there any entry for the balance sheet, I donu2019t think so please clarify.

u2022How do I handle the current year sale of asset in the P&L account and in Balance sheet? Is there any entry for the balance sheet, I donu2019t think so please clarify. In case it is not taken off by the finance form the fixed asset register then we have to a pass a journal entry correct?

u2022How do I handle the current year write off of the asset in the P&L account and in Balance sheet?

u2022How do I handle the current year retirements of the asset in the P&L account and in Balance sheet? What is the manual entry?

u2022What reports are to be printed for the reconciliation purpose?

u2022Do I pass journal entries for each period therefore 6 entries?

u2022The conversion account should become ZERO, correct?

I need your tips and tricks to handle the errors. What type of errors are noticed in the conversion process, and the important tables to look at and the important t codes for FIAA conversions

Thanks and let meknow if I have missed out any impirtant steps

EMENEM

Edited by: EMENEM on Nov 30, 2009 3:02 PM