As of release in 2020, updated

Hi,

When I first published this blog post, I gave advice based on what we should do when undertaking finance system conversion projects for the Asset Accounting business process. Today, I want to update this information to reflect release 2020.

Many improvements have been made!

Bringing interesting news about this SAP S/4HANA 2020 release is exciting! All the tasks listed in the May 2020 blog article are still applicable to the May 2020 version, with the added benefit that the new Asset Accounting reconciliation tool is holistic and system-conversion aligned.

How is that even possible?

Through SAP Note 2896400, new standard reports FIN AA CORR RECON and FIN AA CORR DISPLAY have been made available. Using the same name convention as system conversion steps like R20, R21, and so on, these new transactions output show potential reconciliation concerns. As a result, this innovation is probably reducing the amount of discrepancies in Asset Accounting data during system conversion because the problems are identified before the process even begins.

Let me elaborate on this when I discuss reconciliation later on in this document.

It is crucial to keep in mind that the reports, notes, and KBAs described here are updated from time to time because SAP S/4HANA is a product that is always being improved. In fact, some of them might even be deprecated.

Based on the release 2020 of SAP S/4HANA, this document has been revised.

For the time being, I’ll offer advice on Asset Accounting preparation activities and some typical actions taken to get this business process ready to switch to New Asset Accounting in SAP S/4HANA.

According to the Activate approach, the two primary stages of a conversion project are shown in the following image. SI Checks are conducted during the preparation phase, and below that are preparation activities applicable to all business processes. The circle includes the verification of simplification items and asset accounting preparation.

SAP S/4HANA System Conversion Process Overview

When a system conversion occurs, there are two possible outcomes for asset accounting:

Either traditional asset accounting is being used or new asset accounting is already in use.
It’s helpful to know that SAP has historically given tools to find and, in certain circumstances, rectify data inconsistencies prior to a system conversion process because the Prepare phase for all of these business processes also covers reconciliation tasks (important to say is that there are cases in which SAP Support takes an active role on issues resolution). For the time being, we’ll look at the newest reconciliation tools that are available and how to use them.

Reconciliation tools are available (and required) in SAP ERP and SAP Suite on HANA since the data model necessitates regular harmonisation of the financial data, which is scattered across many tables. Currently, before beginning the system conversion process, we employ the same tools to a) identify and b) correct inconsistencies.

This first action will be referred to as reconciliation actions.

Activities for reconciliation:

If conventional asset accounting is applied:

To access a programme that compares FI-AA postings to G/L postings, run transaction code ABST2 (also accessible through transaction code SA38, programme RAABST02). The whole list of Asset Accounting accounts is output in this report, including the ones that require posts to bring them into compliance (or “reconcile” them) with the G/L.

ABST2 Entry Screen

The result looks like:

ABST2 Sample Result Screen

A comparison of G/L accounts used in Asset Accounting account determination is made, and discrepancies are displayed as the one in the highlighted area.

Run the application RAABST01 and the transaction code ABST (also accessible through the transaction code SA38): Due to postings made in Asset Accounting but not detected in G/L, this application detects disparities in balances between Asset Accounting and G/L.

The following is the ABST’s initial screen.

ABST Entry Screen

When new asset accounting is in effect:

Put into operation transaction code ABST2 (also accessible by transaction code SA38, programme RAABST02), as described in (1).

Run the software FAA GL RECON with transaction code SA38 to access transaction code ABSTL: For New Asset Accounting, this transaction code performs the same functions as ABST, as previously mentioned.
Up to this point, nothing changed.

What has changed in the Asset Accounting Reconciliation feature for the Classic and New Asset Accounting scenarios in SAP S/4HANA release 2020?

FIN AA CORR RECON: This transaction enables performing Asset Accounting data reconciliation tests before beginning a SAP S/4HANA conversion project. This indicates that it is being used in a productive SAP ERP or SAP Suite solution. The audits highlight the most important data inconsistencies that need to be fixed before the SAP S/4HANA system conversion project’s Software Update Manager (SUM) execution.

FIN_AA_CORR_RECON

This transaction, FIN AA CORR DISPLAY, is used to examine the outcome of the reconciliation process. To display the issues detected on it, you can select, say, the most recent run as your selection criterion. A different execution may also be selected using the selection criteria by Company Code and Fiscal Year.

Check see SAP Note 2714344 if there are any data inconsistencies.

FIN_AA_CORR_DISPLAY

The same steps apply to both situations: [1]

The fact that some of the output messages from this new, industry-standard Asset Accounting Reconciliation tool serve as suggestions for areas to pay particular attention to in subsequent checks, such as:

Through transaction number SA38 and programme name RAGITT ALV01, report asset history sheet This report provides in-depth details on assets in a variety of configurations (See available layouts on transaction code OA79).

In the event that G/L accounts have discrepancies as indicated by earlier reports: You can perform RAGITT ALV01 using the Company Code and the account determination as the selection criteria (choose Dynamic Selections). All of the asset transactions on those accounts will be retrieved by the report.

RAGITT_ALV01 Entry Screen

The same steps apply to both situations: [1]

Following completion of this report, compare the values to the G/L account balance in transaction code FS10N. This comparison will assist you in finding any missing asset side entries.

Making a comparison between tables BSEG and ANEP for all the assets under examination is another helpful technique to find contradictions. To see what is lacking on either one of the two sides, G/L and Asset Accounting, this could be quite useful.

Steps to follow

  • Go to ANEP, providing Company Code, Fiscal Year and Asset Number. In case there are a lot of records to analyze, try reducing the selection using Period.
  • Copy the values of BELNR field (document number)
  • Go to BSEG, providing the same criteria as you did on ANEP but adding BELNR (Document Number. Paste the values (you have them on the clipboard). Retrieve the records
  • Compare one to another
  • If differences do not show up, try deleting Document Number from selection criteria on BSEG
  • We can see an example of this comparison on the following picture (without going any deeper because that exceeds the purpose of this document):

Comparison of entries from the BSEG and the ANEP

Program comparison between BSEG and ANEP entries takes into account the fact that there are missing entries on the asset accounting side.

Program RACORR05 can be used to construct the necessary Asset Accounting entries based on the identified counterparty FI posting where there are already missing entries on the Asset Accounting side (again, via transaction code SA38).

Make sure you have the following knowledge before taking this action:

  • Fiscal Year FI Document Number Document Type Company Code
  • Tick Test Run to ensure the information is accurate, then untick Test Run to guarantee execution.

However, comparable exact amounts can be seen in report RAGITT ALV01 if missing entries exist on the G/L side. Find the asset master record by running RAGITT ALV01 with the input “List assets” in this situation. With this knowledge, the following rectification journal entry with the FI transaction code ABF1 (SAP Note 69225) can be made:

Transaction ABF1

FI and AA can have distinct current fiscal years (SAP Note 375419): In this instance, running RAGITT ALV01 in the following year will help you find the precise amount that is missing.

Let’s go on to the subsequent actions now.

Steps for New Asset Accounting Preparation:

Preparing for the conversion process: Start by running the Simplification Item Check report (transaction code SA38 – report /SDF/RC START CHECK) and look for the Asset Accounting-related components (SI* FIN AA).

The Simplification Item Check (SIC) entry screen is depicted in the image below: Execution

Simplification Item Check Initial Screen

If any problems were discovered by the SIC report, correct them before moving on to the next Asset Accounting preparation tasks.

Keep in mind that Asset Accounting closure actions for the preceding fiscal year must have been completed. Tasks pertinent to this closing activity include

  • Transaction AFAB – Depreciation Run Transaction ASKB – Periodic Postings in Asset Accounting
  • These actions lead us to a crucial topic in this document: Restrictions

Asset Accounting restrictions while Software Update Manager (SUM) is running.

The conversion process is depicted in the following image, in which Software Update Manager manages the execution of each step necessary to finish the system conversion to SAP S/4HANA.

SAP S/4HANA System Conversion with Simplification Item Check executions

It is crucial that no more periodic postings be made in Asset Accounting until the conversion process has been finished after periodic postings have been made and the Depreciation Run has been completed (1st SUM SI Check) (Second Box). The reason is that these new postings cannot be amended or fixed once they have been made in SAP S/4HANA. Additionally, since SAP S/4HANA performs depreciation calculations immediately, it is preferable to delay making new postings until SAP S/4HANA is operational to prevent mismatched balances brought on by incomplete processing (such as ASKB, for example) in current ERP.

In addition, some findings from customer conversion projects suggest that certain incomplete AA postings, made after the depreciation run but before the start of business downtime, may result in errors in the Simplification Item Check, which is performed right before the finance system conversion, or may lengthen the time taken for some system conversion steps.

There are some methods to prevent these problems.

Typically, all that is required to ensure the continuation and successful completion of a system conversion cycle is to inform the users not to execute any Asset Accounting actions until business uptime is reached. After the red line in the image, business uptime has returned. This is very beneficial, and the full cooperation of the project team and business is always preferred.

If this notification is unsuccessful, it is acceptable to stop all AA activities until business uptime is achieved. This period appears in our illustration along the red line. User lockdown and ramping down of business activities was what we called it.

Important SAP Notes for System Conversions to SAP S/4HANA Regarding Asset Accounting

  1. Ledger Approach and Asset Accounting (new): Alternative Fiscal Year Variante for Parallel Valuation Adjust Ledger Assignment and Fiscal Years in accordance with SAP Note 2220152
  2. There must be at least one Depreciation Area definition in the Valuation Plan for each Ledger/Currency combination. SAP Note 2403248 – RAFABNEW Availability
  3. Visit SAP Note 2450680 – Reversal of depreciation posting (report RAPOST2000) is not possible for more suggestions.
  4. It is strongly advised to keep track of each conversion cycle whenever it is practical. Keeping a record of all mistakes, problems, and solutions is very helpful for adding efficiency to each conversion cycle based on prior experiences. In fact, records of the subsequent actions must be preserved:
  • Activities for reconciliation
  • Setting Up Activities
  • Conversion procedures
  • Activities after Conversion

I hope you enjoy this material.

Stay safe and healthy, please.