on 03-31-2011 3:08 PM
Hello,
We have setup NEW GL concept with two ledgers, the leading ledger based on IFRS and a local one for country legal purposes.
As a standard the intention is to post all AP invoices in both ledgers ( i assume this is the best practise) but in certain situations like for fixed assets invoices, my client want to capitalize the asset in the IFRS ledger but in the local ledger he wants to post it in costs, so we have to deal with different GL postings, what's here the best practise?
Thanks
One option would be to capitalize the asset with 100% depreciation in the GAAP ledger and a separate depreciation calculation for IFRS.
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Thx for your feedback but in the local GAAP ledger there is no capitalization, the asset is posted as a cost, the issue is that there will be two different postings during the invoice registration, in local GAAP the posting will be to an P&L cost account and in the leading ledger the posting will be to an balance sheet account ( capitalization)
A vendor invoice can only be posted onces, typically one post it simultaneously in the leading ledger and in the local ledger with the same GL accounts ( capitalisation or in costs)
I was thinking about using the concept of Internal Order, so during the posting of the vendor invoice we could post to a Internal Order in both ledgers, as a next step we could settle the Internal order to an asset in the IFRS ledger and in the local ledger we could settle the Internal order to a P&L GL account... but I am not sure that an Internal order can be settled to the 'final' asset, an AUC is possible but that seems me a bridge too far.... any thoughts?
Thanks
Hi janbritt,
I have not faced such scenario, but I am suggesting you one workaround, see if it is practically acceptable to you.
You can run tcode ABSO. Put asset value as 1 i.e. nominal for main area , select one intermediary account & then click on line items. Here you will get different dep areas. Here you can put the value in your depreciation area as you require . This is asset aspect.
The cost that got booked in expense acct can be nullified by fb01l against the intermediary account we used earlier.
The issue with this is it will create a asset with value 1 in main ledger.
Hope this will help you.
Regards
Milind Sonalkar
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