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Customizing for the New Asset Accounting

Asset Accounting: - Pre – Migration:-
Program: - RASFIN_MIGR_PRECHECK:- Execute by selecting this program
This program will check if any errors are there while migrating. If no errors are found it means we can use the
New Asset Accounting, else we need to rectify this error.

Program 2: RFAGL_SWAP_IMG_NEW:- Execute by selecting this program

By activating this activity, system will activate the SAP General Ledger (New) and it will de-activate the
function of Classical GL accounting. Henceforth in the system there won’t be any Classical GL Accounting.

Prior to the migration, you need to customize the new Asset Accounting (new FIAA) in the system, which is
replacing the classic Asset Accounting (classic FI-AA) in SAP S/4HANA Finance.

The SAP S/4HANA Finance migration includes performing pre-checks for using the new FI-AA, checking
accounting principle and ledger group settings, assigning the accounting principle to the ledger group, making
any additional manual settings in Customizing for new FI-AA, and checking the prerequisites for activating the
new FI-AA. Other tasks you must perform include determining and migrating active charts of depreciation,
changing definitions of depreciation areas, defining transfer rules for the posting values and depreciation terms
of a depreciation area, checking the currency type of depreciation areas, and finally activating the Customizing
switch for new FI-AA.

When you install SAP S/4HANA Finance, the system shows the Customizing structure for new FI-AA in the
SAP Reference IMG. By default, it hides the Customizing structure for classic FI-AA.

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We cannot perform any postings to FI-AA until the migration of Customizing and transaction data is
complete. After the migration activities are complete, and the new FI-AA has been activated, we cannot switch
back to classic FI-AA. New FI-AA needs to be configured in preparation for migrating to SAP S/4HANA
Finance. Some of the tasks will include setting the new FI-AA activation status to In Preparation, creating a
new ledger group for local valuation, assigning the ledger group to the local generally accepted accounting
principles (GAAP), and assigning all the active company codes to the chart of depreciation.

You’ll also be responsible for configuring and assigning the accounting principle to the depreciation
areas, setting up accounts assigned to the local accounting principle as asset reconciliation accounts, creating
and assigning the technical clearing account, specifying alternative document types for accounting principle-
specific document postings, and defining the depreciation area for quantity updates.

Pre - requisite’s
Before you install SAP S/4HANA Finance, you have to ensure that the prerequisites are met by using Program
RASFIN_MIGR_PRECHECK for preliminary checks. You have to import this program to your system by
means of SAP Note 1939592 before you install SAP S/4HANA Finance. Perform this check in all of your SAP
clients— the development client, the test client, and the production client.

You have to activate the SAP ERP Financials (FI) Extension (EA-FIN) because it provides the
depreciation calculation program (DCP), which is used for the new depreciation calculation.

As a prerequisite, you also need to migrate the assigned chart of depreciation.

You have to ensure that the parallel currencies in the leading ledger of SAP General Ledger
Accounting and the depreciation areas of the leading valuation in FI-AA are the same.

The company codes that are assigned to the same chart of depreciation should have the same number
and type of parallel currencies used in SAP General Ledger Accounting.

Make sure that the period-end closing has been performed along with the reconciliation of the asset
subsidiary ledger with the SAP General Ledger (G/L). If you happen to install SAP S/4HANA Finance at the
close of the fiscal year, you should also perform year-end closing before the migration.

Migrate Charts of Depreciation:-

You either have to migrate the charts of depreciation automatically using the migration program or do
it manually. You should run the migration Program FAA_CHECK_MIG2SFIN as a test run first

If you run the program as an update run, the system updates the tables for the depreciation areas.

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You’ll have to manually migrate the charts of depreciation in the following cases:

1. Your charts of depreciation couldn’t be migrated during the automatic

migration because the migration program doesn’t recognize the starting
situation defined in your system.
2. Your charts of depreciation are assigned to a deactivated company code, and
because the deactivated company code’s data haven’t been archived yet, the
company code must be migrated with the document migration. This chart of
depreciation should therefore be migrated manually.

4.4.1 Define Asset Balance Sheet Accounts of Parallel Valuation

This step is required if you’re using the accounts approach for parallel valuation.

It isn’t relevant if you’re using the ledger approach.

In the Ledger approach, you can define G/L accounts as reconciliation accounts
for depreciation areas of a parallel valuation of FI-AA, or you can define them again as
accounts for normal posting. In the accounts approach, one or more additional
valuations are represented by separate depreciation areas where the posting is made to
separate accounts in the G/L. Before the migration, these asset balance sheet accounts
were posted directly in FI. In the future, the asset values for both the leading and
parallel valuation will be posted directly in FI-AA. Thus, these asset balance sheet
accounts must be defined as asset reconciliation accounts because they will only be
allowed to be posted in FI-AA. You can change the existing balance sheet accounts of
the parallel valuation that were posted directly as asset reconciliation accounts for the
future in Customizing

Navigation: Asset Accounting (New) → Preparations for Going Live Production Startup →
Accounts Approach. You can reset the reconciliation accounts for parallel valuations:-

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Define the Depreciation Area for a Quantity Update: - In this activity, you specify which
depreciation area you want to use for updating quantities in your chart of depreciation. This setting is relevant
if you’re using collective low-value assets in your organization. When there is a posting made to this
depreciation area, the quantities are updated in the asset master record.

Navigation: - Asset Accounting (New) → General Valuation → Depreciation Areas → Define Depreciation
Area for Quantity Update.

Define the Technical Clearing Account for Integrated Asset Acquisition

This is a mandatory process to post an integrated asset acquisition in SAP S/4HANA Finance. When, using
Transaction F-90, you post an asset acquisition through a vendor and input all the necessary parameters,
including a debit to the fixed asset and a credit to the vendor account, new FI-AA breaks the posting into the
following two components:

1. The first document is created with document Type AA which is posted for the specified
ledger/ledger group with a debit to the asset and a credit to the technical clearing account, as
specified in Customizing. In Figure 4.4, the document is posted for Accounting Principle IFRS,
while in Figure 4.5, the document is posted for Accounting Principle US GAAP

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2. The second document is created with document Type KR, which is not posted to any specific
ledger/ledger group.

The business transaction is thus divided into an operational part and a valuating part during the
integrated asset acquisition posting:

 For the operational part (vendor invoice), a ledger-group-independent document valid for all
accounting principles is posted against the technical clearing account for integrated asset
acquisitions.
 For each valuating part (capitalization of the asset), a separate ledger-group-specific document
valid for each of the accounting principles is posted against the technical clearing account for
integrated asset acquisitions.

Thus, the technical clearing account for integrated asset acquisitions is posted automatically and always has a
zero balance for each of the accounting principles in the chart of depreciation. Because it has a zero balance,
this account doesn’t appear in the balance sheet, but it appears as notes to the financial statement.

As a prerequisite, you need to create a new G/L account as an asset reconciliation account with the
following description: “technical clearing account for integrated asset acquisitions.” This account is created

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using Transaction FS00 and appears in both the chart of accounts and the company code section. You need to
assign this G/L account in the FI-AA account determination for your chart of accounts

By using the following

Navigation: - Asset Accounting (New) → Integration with General Ledger Accounting → Technical
Clearing Account.

Specify an Alternative Document Type for Accounting-Principle-Specific

Documents:
If your organization is using the new G/L with document splitting activated, and you want the
document splitting rules for the valuating document (asset acquisition) and the operative document (Accounts
Payable) to be different, you’ll need to specify separate document types for the valuating document that are
valid for each of the accounting principles.

Alternatively, if your organization policy is to have separate document types for both valuating and
operative documents, this Customizing activity needs to be executed.

You need to check if the existing document types can be used for this activity, or if you need to create
a new one to assign to the valuating documents.

You assign the alternative document type for the posting of your accounting-principle-specific
valuating documents in Customizing under Asset Accounting (New) → Integration with General Ledger
Accounting → Integrated Transactions → : Alternative Doc. Type for Accounting-Principle-Specific
Documents → Specify Alternative Document Type for Accounting-Principle-Specific Documents.

Specify Revenue Distribution for Asset Retirement:-

You can distribute revenues generated from the retirement of assets for a
company code either on the net book value or on an acquisition and production
cost (APC) basis.
In this Customizing step, you need to specify the method for distribution of
revenue for asset retirement under Asset Accounting (New) → Transactions →
Retirements → Gain/Loss Posting Define Revenue Distribution for Fixed Asset
Retirement, as shown in the below screenshot:-

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Post Net Book Value Instead of Gain/Loss

In this step, for each company code level, you need to specify the posting method for the retirement of
an asset due to the sale or scrapping of that asset. By default, the standard process is to post a gain or a loss
during the asset retirement; however, based on your legal and organizational requirement, you can configure to
post the net book value of the assets for a depreciation area. In that case, the net book value is posted to the
account for clearing of revenue from asset sales to either vendors or affiliated companies.

In some countries (e.g., France), you’re legally required to post the net book value. Therefore, you need to
check if it’s a legal requirement to post the net book value for individual depreciation areas and then configure
accordingly in Customizing under Asset Accounting (New) → Transactions → Retirements → Gain/Loss
Posting → Post Net Book Value Instead of Gain/Loss → Specify Depreciation Areas for Net Book Value
Posting.

First, you must identify the company codes where you require the use of this posting option. Next,
you need to identify the depreciation areas within the company codes for posting the net book value to a
revenue clearing account during the asset retirement process. 4.4

Check Prerequisites for Activating New Asset Accounting

After you’ve migrated the charts of depreciation, made the assignments to the company codes, and
performed the additional manual Customizing settings, you can then determine whether the prerequisites for
activating the new FI-AA have been met.

In this activity, you check the prerequisites for parallel valuation in the new FIAA. The prerequisite
for changing the leading valuation in the new SAP General Ledger Accounting is met by setting up and
activating the business function FIN_ AA_PARALLEL_VAL using Transaction SFW5

You then need to execute Transaction FAA_CHECK_ACTIVATION to check if all prerequisites are
met for activating the business function PARALLEL_VAL Customizing switch and if all periodic postings
have been successfully completed.

You can activate new FI-AA using the business function PARALLEL_VAL Customizing switch. This
program checks whether all the prerequisites for activating new FI-AA have been met. You also need to ensure
that no postings are made between the execution of Transaction FAA_CHECK_ACTIVATION and the import
of the PARALLEL_VAL Customizing switch, as shown below:-

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Determine Active Charts of Depreciation

In this Customizing step, you need to check if all the active charts of depreciation
have been migrated and assigned to the company code before any documents can be
migrated.

You need to perform the following activities:

1. Check if all active and relevant company codes are assigned the correct
chart of depreciation.
2. Delete the assignments for charts of depreciation that aren’t relevant or
are unused.

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