Fixed asset valuation - 0L and 2L ledgers both need to be filled in?

[Wayne10]

Hi everyone,

I'm currently working in the "Manage Fixed Assets" app in SAP S/4HANA Public Cloud and I’m a bit confused about the Valuation section of the asset master data. I noticed that there are multiple valuation areas assigned to an asset, linked to different ledgers (for example, 0L and 2L). Here's a screenshot for reference:

My questions are:

Do we need to fill in both ledgers? What happens if we don't?

What is the difference between these ledgers in this context?

Is there a best practice or recommendation for which valuation areas should be maintained, and which ones can be left alone if unused?

Why does Ledger 2L appear multiple times with different depreciation areas (15, 16, 32)?

Any help to better understand how to work with this screen and when/why to fill in each line would be greatly appreciated! 

[Edna_Garcia1]

Hola Gabor5

I invite you to read the Asset Accounting documentation on the SAP Help Portal. I will share the links that answer your questions.

My questions are:

• Do we need to fill in both ledgers? What happens if we don't?

Every time you run the depreciation at the end of the month, you select the ledger and the system automatically calculates those values based on the rules of each depreciation area. The system will create the journal entries for the corresponding depreciation areas.

• What is the difference between these ledgers in this context?

When your SAP System was configured, the company decided to use 2 ledgers - one for Local purposes (ledger 2L) and the other to use the IFRS rules (Ledger 0L). 

However, each ledger has different depreciation rules predefined by country to meet various requirements, so you see more than one.

Find more details of the Manage Fixed Asset in this SAP Help Portal Link

• Is there a best practice or recommendation for which valuation areas should be maintained, and which ones can be left alone if unused?

As I mentioned, the depreciation amount for this valuation areas are calculated automatically. You cannot deactive it and you cannot change predefined depreciation keys.

• Why does Ledger 2L appear multiple times with different depreciation areas (15, 16, 32)?

Each depreciation area has different depreciation rules and it is use for different purposes, you can see the names:

• 15 - Local Tax
• 16 - Customer specific use
• 32 - Book depreciation

I highly recommend you discuss this topic with your the Company's Accounting Department.

Best regards.

Edna