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    Parallel Currencies in Asset Accounting: 1. Define Currencies For Leading Ledger: (OB22)

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    The document discusses using parallel currencies in asset accounting. It defines additional currencies for the company code to maintain general ledger accounts and foreign business transactions in different currencies. It describes setting up depreciation areas for parallel currencies like EUR and USD to maintain fixed asset values and depreciation in different currencies. The steps include defining currencies, depreciation areas, specifying area type and transfer rules, and assigning foreign currencies to depreciation areas to value assets.

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    Parallel Currencies in Asset Accounting: 1. Define Currencies For Leading Ledger: (OB22)

    Uploaded by

    sapeins
    257 views7 pages
    The document discusses using parallel currencies in asset accounting. It defines additional currencies for the company code to maintain general ledger accounts and foreign business transactions in different currencies. It describes setting up depreciation areas for parallel currencies like EUR and USD to maintain fixed asset values and depreciation in different currencies. The steps include defining currencies, depreciation areas, specifying area type and transfer rules, and assigning foreign currencies to depreciation areas to value assets.

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    The document discusses using parallel currencies in asset accounting. It defines additional currencies for the company code to maintain general ledger accounts and foreign business transactions in different currencies. It describes setting up depreciation areas for parallel currencies like EUR and USD to maintain fixed asset values and depreciation in different currencies. The steps include defining currencies, depreciation areas, specifying area type and transfer rules, and assigning foreign currencies to depreciation areas to value assets.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    257 views7 pages

    Parallel Currencies in Asset Accounting: 1. Define Currencies For Leading Ledger: (OB22)

    Uploaded by

    sapeins
    The document discusses using parallel currencies in asset accounting. It defines additional currencies for the company code to maintain general ledger accounts and foreign business transactions in different currencies. It describes setting up depreciation areas for parallel currencies like EUR and USD to maintain fixed asset values and depreciation in different currencies. The steps include defining currencies, depreciation areas, specifying area type and transfer rules, and assigning foreign currencies to depreciation areas to value assets.

    Copyright:

    © All Rights Reserved
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    Download as docx, pdf, or txt
    of 7

    Parallel Currencies in Asset

    accounting
    3

    In FINANCIAL  accounting apart from the loacal CURRENCY  we can define two additional CURRENCIES  for
    thecompany code. The main purpose of using parallel CURRENCIES  is to maintain the G/L accounts in different
    currencies. The companies which have subsidiaries in different countries use parallel currencies to update the foreign
    business transactions in different foreign currencies (parallel currencies).
    We can use various CURRENCY  types for the parallel currencies such as Group currency, Global Company
    currency, Index based currency and Hard currency.
    The purpose of using parallel currencies in Asset accounting is to maintain the fixed asset values such as APC and
    Depreciation in different currencies.
    1. Define Currencies for leading ledger: (OB22)
    SPRO-->Financial Accounting (NEW)-->Financial Accounting Global settings--> Ledgers--> Ledger-->Define
    currencies for Leading ledger
      Here you define the additional currencies that you want to use

    2. Define Depreciation Areas:


    SPRO-->FINANCIAL  Accounting (NEW)-->Asset accounting-->Valuation-->Depreciation Areas-->Define
    Depreciation Areas

    Depreciation areas 1, 2 and 3 i.e. Book Depreciation, Special tax Depreciation and Derived Depreciation
    are already defined in the system. Just select 0, Area do not post for Depreciation area 2
    3. Define Depreciation Areas for Parallel CURRENCIES :
    We should always copy the depreciation areas from the real depreciation area when creating depreciation
    areas for the parallel CURRENCIES . Since, we are using two parallel currencies i.e EUR and USD. We
    should define two depreciation areas for parallel currencies for each of the depreciation areas. i.e we
    should define 1 depreciation area for USD and 1 depreciation area for EUR  for both Book Depreciation
    area and Special tax depreciation area. Therefore we will have 4 depreciation areas for parallel
    currencies 2 for Book depreciation and 2 for Special tax depreciation.
    Depreciation areas for parallel CURRENCY  USD for Book Depreciation

    In the same way create one more depreciation area for parallel CURRENCY  EUR for Book Depreciation
    Depreciation areas for parallel CURRENCY  USD for Special Tax Depreciation
    In the same way create one more depreciation area for parallel CURRENCY  EUR for Special Tax depreciation
    4. Specify Area Type: (OADC)

    Here you specify the purpose of the depreciation area i.e. for what type of valuation you want to use the
    depreciation area.

    5. Specify Transfer of APC values: (OABC)


    Here we specify how the APC values will be transferred to the depreciation areas. For example if you
    want to show the APC values of a depreciation in foreign CURRENCY  then you should use the the
    local CURRENCY  values as basis, that means for depreciation areas in foreign currency you should
    use book depreciation as the base. We should also mark the depreciation areas in foreign currency as
    identical so that the values from the transferring depreciaiton area  are transferred without any changes.

    6. Specify Transfer of Depreciation Terms: (OABD)


    Here we specify the transfer rules for the transfer of deprecation terms to the depreciation areas.
    7. Define Depreciation Areas for Foreign Currency: (OAYH)
      SPRO-->Financial Accounting (NEW)-->Asset accounting-->CURRENCIES -->Define Depreciation areas for
    Foreign CURRENCIES
    Here we assign foreign currencies for depreciation areas in which we want to them to be valuated.

    8. Determine Depreciation Areas in the Asset Class: (OAYZ)

    9. Create an Asset: (AS01)

    10. Post Asset Transaction: (F-90)


    Post a Transaction for the asset.
    11. Asset Explorer: (AW01N)

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