Asset migration - mapping between different depreciation areas?

[former_member652706]

Dear community,

let's assume you want to migrate assets from an old to a new system. The old system however uses at least one depreciation area that does not exist in the new system.

How can you map now between the depreciation areas of those two systems?

Or is the only way to do this to implement the missing depreciation areas in the new system aswell?

Thanks in advance!

[former_member652706]

Thanks!

So basically, there are just two options: If you want to continue using a depr. area (after evaluating whether it's still necessary) you should implement that one in the new system and if it's not necessary anymore you just leave it out.

That's what I was assuming from the beginning, since it's just logical, but I was wondering whether there might be some way "in between" those two options.

[JonathanEemans · Accepted solution]

Hi,

There are different types of depreciation areas:

• Real depreciation areas that post to general ledger;
• Real depreciation areas that do not post to general ledger;
• Parallel currency depreciation areas that do not post to general ledger;
• Derived depreciation areas for which the values are calculated from two or more real areas using a calculation formula that do not post to general ledger;
• Investment measure depreciation areas;
• Other special depreciation areas.

The answer to your question depends on which type of depreciation area is missing. Which type of depreciation area is missing?

If the missing depreciation area is a real depreciation, that posts to general ledger, it's typically a separate valuation according to a specific accounting principle. As asset values can be different between different accounting principles, this should be setup as a seperate depreciation area in asset accounting.

Best regards,

Jonathan Eemans

[former_member652706 · Accepted solution]

Hi,

thanks again for your answer!

There are different types of depreciation areas that are distinct from the new system. I should probably mention that the old system is an ERP6-System, so it's not HANA.

The first area that's missing is a real depr. area that posts to general ledger - I will have to implement that one in the new system I suppose.

Then there are areas that are real but don't post to general ledger, and areas, that aren't real and deal with special topics, mostly tax issues.

Do I have to deal with the latter ones differently, e.g. is there a different way of mapping them/their values than just copying the depreciation areas to the new system?

[JonathanEemans · Accepted solution]

Hi,

If the real depreciation area that posts to general ledger, real depreciation areas that don't post to general ledger and tax depreciation areas are created for accounting rules that are still applicable for the company / group, you should create these depreciation areas in the new system.

The question is whether these depreciation areas are still relevant for the company / group and it's accounting rules today. It happens that accounting rules change. With the migration to a new system, it's best practice to review the current setup.

Please also take into account new asset accounting rules when setting up asset accounting in the new system. For example: for each currency in General Ledger Accounting, you have to create parallel depreciation areas in new Asset Accounting.

Best regards,

Jonathan Eemans

[former_member652706 · Accepted solution]

Thanks!

So basically, there are just two options: If you want to continue using a depr. area (after evaluating whether it's still necessary) you should implement that one in the new system and if it's not necessary anymore you just leave it out.

That's what I was assuming from the beginning, since it's just logical, but I was wondering whether there might be some way "in between" those two Options.

[JonathanEemans · Accepted solution]

Please close this question if it's answered.