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Critical Issue - Please help me asap

Former Member
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Hi All,

My client has a requirement that they want to use US valuation method i.e. book depreciation for all the countries outside the US.

Can u pls check whether these configuration steps are correct or not. I found this on SAP help.

Steps:

1. Call out the transaction OADB, for defining a new depreciation area

2. Select the Chart of Depreciation for ex. COD for China

3. Select the depreciation area 01 (Book Depreciation) from the COD of China and copy it

4. Change the text

5. Real Depreciation (Select)

6. Posting in G/L (Area does not post)

Transferring the Identical Acquisition Values from Depreciation Area 01

1. Call out the transaction OABC, (Specify Transfer of APC values)

2. Select the Ident. field for depreciation areas (which are created)

Defining the transfer of the Identical Depreciation Terms from Depreciation Area 01

1. Specify Transfer of Depreciation Terms - OABD

2. Select the Ident. field for the new depreciation area which is created, then enter 01 for the area in TTr fields.

Using the Parallel Currency in Asset Accounting

1. Call out the transaction - OABT

2. For the newly created Depreciation Area, enter currency type 31

R these steps correct . Please lemme know Gurus ASAP.. this is a very critical issue

Accepted Solutions (0)

Answers (1)

Answers (1)

Former Member
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You did not specify at what stage you are, is it a new implementation or a old one, and suddelnly there is a decision and you have to change the config...

Anyways, understand that this is a very common requirement. I have done many implementations with the same need for US companies working globally..

Normally th US HQ would require that all the Subs shall have the US GAAP set of books. If you are beginning the implentation, keep Dep Area 01 as per US GAAP. For local reporting the Subs can create their own Dep Areas as per local GAAPs. With new GL you can handle through parallel accounting principals.

If you already know this, and just want to know how to set up a Dep area, let me know.

Former Member
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Hi Sunil,

We r in the configuration stage. I would really appreciate if you could please give me th exact configuration steps so that it would help me in the configuration stage. It's an implementation project and we r implementing New-GL .I dont have any clue regarding the configuration to be done for this piece, as i am a fresher.

Thanks & Regards,

Renuka Reddy

Former Member
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This is not a critical issue. You see, configuring a Dep area 01 is not the question. The question is for Chinese company codes, you will need to create the Chinese CoD and again use area 30 for US GAAP. So in that area, you need to talk with Finance from business.

Understand “Set up Areas for parallel valuation” by using the wizard in the configuration screen. You will have to create possibly 2 CoD, one for US and one for China only if you want to report local Chinese books thru Dep Area 01..

In case your management does not want the Chinese books from 01 area, then set up 01 as US GAAP. That will be simpler, but then your local Chinese books will be messed.