Asset Accounting Data Structure Changes

Simplifying the way financial transactional data is stored

Within S/4HANA the underlying architecture and data structure of asset accounting has been changed to optimize the subledger but also to ensure full integration to finance via the universal journal.

Like ‘new’ general ledger, ‘new’ asset accounting isn’t so new and has been available in SAP ECC since 2013 when enhancement pack 7 was released. In SAP ECC it was optional whether you migrated to ‘new’ asset accounting or stuck with ‘classic’ asset accounting. In S/4HANA there’s no choice, it’s a mandatory structure change and ‘classic’ asset accounting becomes obsolete.

During the migration to S/4HANA it’s mandatory that all assets are migrated to ‘new’ asset accounting.

Key changes to S/4HANA asset accounting functionality

When SAP redesigned the asset accounting solution, the intent was driven by the concept that all postings to leading and non-leading ledgers should be fully integrated and performed in real-time.

The main driver for introducing ‘new’ asset accounting in SAP ECC was the introduction of parallel valuation which facilitates the maintenance of multiple accounting principles posting to different ledgers or depreciation areas.  However, the ‘new’ asset accounting solution is also a more technically stable and less error prone solution than ‘classic’ asset accounting.

Coupled with the introduction of the universal journal in S/4HANA there is much tighter integration between asset accounting and general ledger. Asset postings are transferred to the general ledger at an asset level so financial reports can be run at an asset level.

Parallel Valuation

Under the new structure all accounting principles post real-time and simultaneously. They no longer have to be posted periodically, so the actual values of the leading valuation and the parallel valuation are posted in real-time. The accounts are reconciliation accounts in all ledgers, and as such you can’t post only to the general ledger and not to the asset. The result is that everything stays in sync.

Depreciation

A new depreciation calculation engine has been introduced. The determination of the accumulated depreciation of the asset and the posting of the depreciation expense now occur at different points in time. 

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