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Business Scenario The customer has two separate and distinct fiscal year calendars, one for financial statements, the other for tax reporting and compliance purposes. The customer maintains their Asset Management system in a separate database for financial and tax purposes. Business Issues Description The business issues are the incorrect depreciation start date for US Statutory Requirements since SAP can offer only one fiscal year that has the same start and finish date. The tax depreciation calculations due to the depreciation start date and also the reporting of the depreciation is not in the correct fiscal year. Here is an illustration of the issues Improper tax reporting for mid-year convention: An asset is capitalized on July 1, 2004 with a midyear convention on book one, financial books and also books 10, a tax book. Using the fiscal year variant in place, a book calendar, the mid year convention will be on January 1, 2005 on book one and for the tax book, the mid year convention should be on April 1, 2004, the prior fiscal year per the tax year variant. If you execute an Asset Management report for book 10 for as of 4/30/2004, no data is available since the asset does not exist for the tax books, because the system is using the book calendar. The Asset Management system has the design to correctly calculate all required depreciation methods: The customer specific and delivered SAP depreciation key correctly calculates the required depreciation. There would be no need to recreate these calculations in special ledger.Configuration and Design The intent is to create a set of ‘tax only’ assets in a separate and new company code with the underlying design as used in the ‘book only’ company code, except for a separate fiscal year variant compatible with the tax calendar. These are the new configuration steps needed: Creation of a new company code (named UST1 for illustration purpose) is needed to support the separate fixed assets needed for tax purposes only. Creation of a new chart of depreciation is needed. UST1 copy of current US01 is needed in order to:
This new Chart of depreciation specific screen layout with cost center field not required. The new company code for the tax books will need the following assignments:
Creation of a new plant is also needed Cost center issue: not requiring a cost center will prevent from having to create a new controlling area. The tax company code UST1 cannot be assigned to the controlling area 9900 as it will have a totally different fiscal year variant. Data loading process flow steps for new company codes for tax books:
Asset Maintenance Plan with related Options to assess the level of development: Programs to create and value asset transactions in Company Code UST1 based on identical asset transactions in Company Code US01: Asset creation and valuation will be needed to be evaluated based on the designed processes to create and evaluate asset master records. There will need to be revisions to the Asset Management security roles as follows: In Company Code US01the Asset Management security profiles should include those transaction codes in the design that allow asset capitalization, retirement, intracompany transfer and master record change. For Company Code UST1, the same and only the transaction codes used in US01 that allow asset capitalization, retirement, intracompany transfer and asset master record change are to be authorized. Additionally, in UST1, all asset transactions can only be processed using a program no end users should have access to process any asset transactions. Bach processing option: Develop a program that will create a BDC session to create, retire and intercompany transfer (not many at all) based on changes to key SAP Asset Management Tables (ANLC, ANLA, ANLB and ANLZ just to name a few). Analysis of the asset management change documents of the transactions is necessary to identify changes since the last run. The BDC sessions will be done as needed, but at least monthly if not weekly. On-line synchronization option: Using the SAP workflow engine, can enable asset transaction processing on a real time basis versus a batch basis. The advantage of using SAP workflow is that gathering information about a business events, asset capitalization, retirement, and intracompany transfer and asset master record changes, to mirror transactions from Company Code US01.Please contact Christopher Courter, President of Morning Star Business Consulting, Inc for more information via email at Christopher.Courter@morningstarbc.com or calling (281) 682-7032.
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