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Parallel Currencies in Asset accounting | SCN

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Parallel Currencies in Asset accounting

created by Sneha Jain on Apr 20, 2012 5:16 PM, last modified by Sneha Jain on Apr 24, 2012 7:50 AM Share 2 1 Tw eet 0 Like 9

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In Financial accounting apart from the loacal currency we can define two additional currencies for the company code. The main purpose of using parallel currencies is to maintain the G/L accounts in different currencies. The companies which have subsidiaries in different countries use parallel currencies to update the foreign business transactions in different foreign currencies (parallel currencies). We can use various currency types for the parallel currencies such as Group currency, Global Company currency, Index based currency and Hard currency. The purpose of using parallel currencies in Asset accounting is to maintain the fixed asset values such as APC and Depreciation in different currencies.

1. Define Currencies for leading ledger: (OB22)

SPRO-->Financial Accounting (NEW)-->Financial Accounting Global settings--> Ledgers--> Ledger-->Define currencies for Leading ledger

Here you define the additional currencies that you want to use

2. Define Depreciation Areas:

SPRO-->Financial Accounting (NEW)-->Asset accounting-->Valuation-->Depreciation Areas-->Define Depreciation Areas

Depreciation areas 1, 2 and 3 i.e. Book Depreciation, Special tax Depreciation and Derived Depreciation are already defined in the system. Just select 0, Area do not post for Depreciation area 2 3. Define Depreciation Areas for Parallel Currencies:

We should always copy the depreciation areas from the real depreciation area when creating depreciation areas for the parallel currencies. Since, we are using two parallel currencies i.e EUR and USD. We should define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we should define 1 depreciation area for USD and 1 depreciation area for EUR for both Book Depreciation area and Special tax depreciation area. Therefore we will have 4 depreciation areas for parallel currencies 2 for Book depreciation and 2 for Special tax depreciation.

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Depreciation areas for parallel currency USD for Book Depreciation

In the same way create one more depreciation area for parallel currency EUR for Book Depreciation

Depreciation areas for parallel currency USD for Special Tax Depreciation

In the same way create one more depreciation area for parallel currency EUR for Special Tax depreciation

4. Specify Area Type: (OADC) Here you specify the purpose of the depreciation area i.e. for what type of valuation you want to use the depreciation area.

5. Specify Transfer of APC values: (OABC) Here we specify how the APC values will be transferred to the depreciation areas. For example if you want to show the APC values of a depreciation in foreign currency then you should use the the local currency values as basis, that means for depreciation areas in foreign currency you should use book depreciation as the base. We should also mark the depreciation areas in foreign currency as identical so that the values from the transferring depreciaiton area are transferred without any changes.

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6. Specify Transfer of Depreciation Terms: (OABD) Here we specify the transfer rules for the transfer of deprecation terms to the depreciation areas.

7. Define Depreciation Areas for Foreign Currency: (OAYH)

SPRO-->Financial Accounting (NEW)-->Asset accounting-->Currencies-->Define Depreciation areas for Foreign Currencies

Here we assign foreign currencies for depreciation areas in which we want to them to be valuated.

8. Determine Depreciation Areas in the Asset Class: (OAYZ)

9. Create an Asset: (AS01)

10. Post Asset Transaction: (F-90)

Post a Transaction for the asset.

11. Asset Explorer: (AW01N)

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10401 View s Tags: asset_accounting, assets, parallel, ledgers, currencies, enterprise_resource_planning, sap_erp_financials

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Parallel Currencies in Asset accounting | SCN

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28 Comments
Neelesh Jain Apr 21, 2012 12:46 AM

Very nicely explained... Thanks... But some screen shots are not visible !!!
Like (1)

Sneha Jain Apr 21, 2012 9:21 AM (in response to Neelesh Jain)

Thank you ... you are right two screen shots are not visible. will check it out..
Like (0)

Narasimhulu Konnipati Apr 21, 2012 5:53 AM

Hi Sneha, Good document and great effort. Nice to see that you thought of sharing your knowledge with SCN users. Keep going Thanks, Narasimhulu
Like (1)

Sneha Jain Apr 21, 2012 9:22 AM (in response to Narasimhulu Konnipati)

Thank you ..
Like (0)

Ravi Sankar Venna Apr 23, 2012 6:17 PM

Keep up the good work. Thanks for your valuable contributions to the community. Regards, Ravi
Like (3)

Sneha Jain Apr 23, 2012 7:47 PM (in response to Ravi Sankar Venna)

Thank you
Like (0)

Nathan Genez Apr 24, 2012 3:01 AM

Why did you include steps for the configuration of the depreciation key? That's not directly related to the setup of parallel currencies in FI-AA. Also, I'd recommend an introduction to the topic. Explain why this setup is required and what the benefit is.
Like (1)

Ravi Sankar Venna Apr 24, 2012 7:01 AM (in response to Nathan Genez)

Thanks for your suggestion on this blog. Your time is really appreciated in giving suggestions and encouragement to new members on this community. May I take the pleasure of putting your asset accounting blogs (hope this would definitely benefit the forum members) http://scn.sap.com/people/nathan.genez/content Thanks and Regards, Ravi
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Sneha Jain Apr 24, 2012 7:12 AM (in response to Nathan Genez)

Hi Nathan, Thank you for reviewing my document. I will make the changes as suggested by you.
Like (1)

Sada Bandla Oct 18, 2012 2:47 PM (in response to Nathan Genez)

Hi Nathan Genez,Ihave an issue ..,need your solution for this GAP. In our company we found a GAP in APP. need your expertise to fill these gap. Priority : Very High Iam attached a document to this disscussion. How to develop logic for this?? Where do we develop logic as per document and how to develop this in APP process and which table need to carry this??? Please Take a Look in to Attached Doc.( If you need any conformation mail me at Thanks sadasiva http://scn.sap.com/thread/3250689) sada2siva2007@gmail.com

Like (0)

Abhishek Gupta Apr 24, 2012 8:08 AM

Great Presentation .....Great job Done

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sasmito handoko May 23, 2012 10:36 AM

Dear Sneha.. Could you advice me on my problem below ? We are using 3 depreciation area which is : - 01 Book Depreciation IDR, - 02 Tax Depreciation IDR - 99 Book Depreciation USD while IDR is our company code currency.. (local currency) we've set the asset to be capitalized from PO when we perform Invoice Receipt (MIRO) and also set the asset value date to Invoice Posting Date the question is : if we bought an asset for example 100.000 USD.. then we perform GR and IR... with rate of 9000 IDR / 1 USD we get the capitalized value in depreciation area 01 --> 100.000 USD * 9000 = 900.000.000 IDR but in depreciation area 99 we got value of (assuming todays rate is 8900 IDR / 1 USD) 900.000.000 IDR / 8900 = 101.123,59 USD differs from real value of 100.000 USD how to get the initial value of purchase 100.000 USD to enter in deprec. area 99 ? what should i do ? any idea ? thank you... Sasmito
Like (0)

Sneha Jain May 23, 2012 3:02 PM (in response to sasmito handoko)

Hi Sasmito, Please check the config in OABC (Specify transfer of APC values). You should use 01 depreciation area in valuead field and select identical check box for depreciation area 99.
Like (0)

Nathan Genez May 25, 2012 4:59 PM (in response to sasmito handoko)

Don't post questions to blogs. This should be in the Discussion forum.

Like (0)

SAP FICO Jun 13, 2012 7:16 AM

Keep up the good work, very informative document.

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Roberto Scerbo Jul 8, 2012 10:05 PM

hello, good presentation, I would like to know about this paragraph, Could you explain the reason of this activity? how could I distinguish a real depreciation area? is it mandatory?

"We should always copy the depreciation areas from the real depreciation area when creating depreciation areas for the parallel currencies. Since, we are using two parallel currencies i.e EUR and USD. We should define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we should define 1 depreciation area for USD and 1 depreciation area for EUR for both Book Depreciation area and Special tax depreciation area. Therefore we will have 4 depreciation areas for parallel currencies 2 for Book depreciation and 2 for Special tax depreciation."
Like (0)

Sneha Jain Jul 13, 2012 12:05 PM (in response to Roberto Scerbo)

Hi Roberto, Thank you. Regarding your questions, it is mandatory to copy the depreciation areas for parallel currencies from the real depreciation area because inconsistencies will arise in transfer of APC values and depreciation terms if you dont copy from real depreciation area.
Like (1)

prabina panigrahi Jan 15, 2013 11:52 AM

Hi, it is very much helpful thank you very much. Prabina

Like (0)

Godavari SAP Jan 21, 2013 2:08 PM

Well-explained. Thanks Sneha.

Like (0)

Paw an Nair Jul 12, 2013 6:31 AM

Hello Sneha, it was very helpful... Thanks

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Ram Kumar Sw ami Jul 30, 2013 4:16 PM

Hi Sneha, This is very helpful document for me....Thanks

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Santhanakrishnan Arumugam Aug 26, 2013 7:45 PM

Hi Sridevi, Nice effort , keep it up , really helping... Thanks Reg Krishnan

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Joo Paulo Campos Amaral de Almeida Sep 16, 2013 1:24 AM

Hi Sneha, This is helpful! Thanks.

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Sudhir Krishna Kumar Singh Oct 31, 2013 9:47 AM

Very Usefull, thanks for sharing...

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Lakshmi Sama Nov 7, 2013 7:35 AM

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Hi Sneha,

Parallel Currencies in Asset accounting | SCN

Nice effort and really an appreciatable doc. Thanks for sharing such a wonderful doc.Keep sharing your knowledge. Regards, Lakshmi S
Like (0)

Yao Zhang Nov 14, 2013 4:16 AM

Thank you so much for sharing this, this part is hard to understand to me. It's very helpful.
Like (0)

Jazib Tariq Nov 14, 2013 8:28 PM

Nice Document
Like (0)

Lisa Zhang Nov 15, 2013 8:02 AM

Really helpful document!

Like (0)

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