Unable to close the AA fiscal year (AJAB), "Depreciation/updating of values has errors"

[Former Member]

Hi SAP Experts

I'm facing issue in closing 2011 fiscal year for Asset Accounting. The detail for the issue as the following:

The system can maximum allows 2 fiscal year to be open at the same time, which is our scenario here, we have 2011 and 2012 open in Asset Accounting. While the FI (GL) 2011 fiscal year is alread closed, im not able to close the AA fiscal year for 2011. Every time i run AJAB, to close AA 2011 FY, I get the above error, "Depreciation/Updating of Values has errors". This error is with 69 Assets in within the same Asset class(FA50).

Dignostic:

(1) I checked the depreciation for all the assets, which has been posted for all the periods in 2011

(2) I ran the AFAR (Recalculate Values), i got an error "01 US Financial- Book Depreciation/ E669 Fiscal year 2011 is already closed in Financial Accountin"

(3) I already managed to close the year in the QA client, but this was after opening the 2011 FI-GL FY

Note: The company refusing opeining the 2011 FI (GL) Fiscal year. I tried hard with them, but they strcitly refused opening the fiscal year.

Questions:

(1) Is there any way to Close the AA 2011 fiscal Year without opening the 2011 FI-GL FY??

I appreciate having the time contributing in making this website a ritch source of knowledge, and I appreciate your participating in solving this issue in advance

[Former Member · Accepted solution]

Hi Everyone

Thank you so much for you support and your reply, but now i'm coming back with the full solution for this issue and hoping this will add benefit to this forum readers.

Restating the problem:

2011 and 2012 AA fiscal year (FY) are still open while only 2012 FI (GL) Fiscal year is open. The issue was to close 2011 fiscal year without openning FI 2011 FY. Provided that users tried to close the AA 2011 FY but didn't manage to close it correctly. In 2012 I discovered that the system is running with two AA FY open at the same time.

Usually whenever users try to close the AA FY, system checks take place to make sure all assets have been depreciated correctly. Then the system gives errors via an error indicator upon failure in the checks; as a result,  the system will deny the year closing. To correct the incorrect assets a depreciation recalculation must be run for all outstanding fiscal years. Until then users will receive an accurate message about the error, unless the errors occurred in closed FI FY. In this case, the error indicator will not be cancelled by re-calculation in the open FI FY.

The error indicator is a field in the ANLC table, XAFAR, this field should indicate "0" for No Error and "2" for errors.

To close the AA 2011 FY we had to reset the error indicator from "2" to "0" by using "RACORR52" program, this allows us to close the 2011 AA FY without even opening the FI 2011.

Note:- Don't go for this solution until you revise that you have no errors in all assets in the year that you want to close.

Thank you again and i hope this thread was helpful for you all, and if it is helpful please reward this reply.

Regards

Ahmed

[Former Member]

Thank you Marssel for your reply

The problem is more complex than what i thought. The differences is in the APC account for bldg and land imporovement not in depreciation. The other issue is the company refusing opening the fiscal year in production.

Back to where we started, is there any solution that can be used without opening the fiscal year in production.

[Former Member]

You are in the Twilight Zone (for lack of a more gentle way of putting it)

It sounds like they monkeyed around with the system settings, e.g. posted adjustments to the APC accounts after turning off the ledger/sub-ledger control, let it slide for 2 years because the system still permitted them to close, and now it's biting them in the behind.

My first major AA consulting contract was a company that failed an SEC (Security & Exchange Commission) because of what they had done in the AA system. (For any who might wonder, failing an SEC audit is as bad as it gets in the US). I had to reverse and revise their entire asset transaction history. Of course they had to open the books because that was the whole point; The SEC had determined that their published financial reports were invalid.

Their options are few. Their P&L is inaccurate for the past. The only audit-acceptable thing will be to re-open the books. If they don;t want the P&L hit in the past they can re-class the expense postings into a balance sheet account, flow that account balance through the intervening years, and recognize the expense in the current year. Either way, they are going to have to post.

The other alternative is to monkey around in SAP to make the sub-ledger match the GL. That would make you an accessory to fraud.

If you end up revising the past, I can offer you some tips. I encountered lots of unique situations and had to improvise as I encountered them. The company passed SEC scrutiny when I was done. If anyone is wondering whether the company was capital intensive, it was; It's an airline.

Good Luck.

[Former Member]

David

thank you so much for your reply.

I really need your assistance in this issue. I just came to this project and i managed to reduce down the problem to its origin.

The off balance problem is streamed from subsequent year addition to the first acquistion on assets.

For example, an asset was capitalized on 2011 with 100,000 USD, and later on 2012, another posting has been posted again to the same asset due to asset improvement. This subsequent posting caused a lot of issues in depreciation and Tax books.

However, I know that Subsequent postings should have been prevented, and Sub asset should have been created to carry the additions, but this was not done.

In solving this problem i was suggesting the following:

(1) Fix the config to prevent the subsequent postings

(2) Creating Sub assets to carry the new additions

(3) Transfer the subsequent cost from the parent assets to the sub assets with 2012 date

(4) Run Value Recalculation

Hoping the ABST2 will tally after that.

SAP Experts, Is there any negative impacts or warnings that i should keep in mind in while executing the above proposed solution??

Thank you experts in advance, your feedback is really appreicated.

Regards

[Marssel700]

for anyone solution you must open GL 2011. You must verify the differences and run in Assets adjust. After that you have to reverse in accounting to doesn´t affect your closed year.

You can also check it by ASKB.

[Former Member]

My apologies. For some reason I confused your message with another one wherein the subledger and ledger don't agree.

My rant was misplaced, but the reality is that you will still have to open the year to post, with journal entries negating the impact.

Once that's done, here's a possible fix that has worked for me more than once; temporarily tick "on" the "negative values allowed" indicator in the affected assets in the depreciation  area(s) with errors.

In the project I mention above, I had an asset that had several postings within the same day, They netted out positive, i.e. the sun rose and set with the asset's nbv being positive, but the fact that it had temporarily been driven negative caused the same error you're seeing, and it stumped more than one experienced asset consultant before I got there. I also found the same situation at a client last year, and fixed it the same way.

Try it in a test client first. Hopefully you've got a refreshed test box./client with the same asset error.

Procedure:

- tick on "negative nbv allowed" in the relevant assets relevant depreciation area(s)

- recalculate. Run depreciation.

- Once done, turn off the negative allowed indicator in the assets.

Good luck.

[Marssel700]

Ahmeda,

I have got similiar issue. You have to reopen 2011 and run you depreciation to adjust these 69 assets. After that you will adjust Account in closed year by OASV.

Regards

[former_member392819]

Hi Ahmeda,

Before closing of FI fiscal year, you need to carry out the year ending process in Asset Accounting. First my suggestion is to run ABST2 and see what are the values are inconsistent with the GL.

Thanks,
Sravan

[Former Member]

Sarvan

Thank you so much for you reply, it is helpful to know that we have difference in between the GL and AA, but what is the next step?

I ran the ABST2 and i found out there is 11,789,557.73 difference between GL and AA. the GL > than AA

How can I proceed from here??