1 / 8

Parallel Accounting (GAAP, +IFRS)

Parallel Accounting (GAAP, +IFRS). SAP Best Practices for Chemicals. Purpose, Benefits, and Key Process Steps. Purpose In this scenario , financial reporting following two accounting principles is described: IFRS and local GAAP (Handelsrecht).

callum-levy
Download Presentation

Parallel Accounting (GAAP, +IFRS)

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Parallel Accounting (GAAP, +IFRS) SAP Best Practices for Chemicals

  2. Purpose, Benefits, and Key Process Steps • Purpose • In this scenario, financial reporting following two accounting principles is described: IFRS and local GAAP (Handelsrecht). • The different accounting principles are shown using the new G/L with two ledgers (= the ledger solution). The SAP system always considers parallel ledgers as complete ledgers in this case. This means that all postings without a valuation (GAAP) difference are posted into the leading and the non-leading ledgers in the respective company code. Valuation postings which are only valid for a specific GAAP will only be posted into the dedicated ledger set up for that GAAP. The usage of parallel accounts has been brought down to a minimum. The leading ledger (0L) is local GAAP und the additional ledger (YQ) is IFRS. This scenario describes many cases of valuation differences and proposes how to configure them in SAP. Benefits • Closing process in FI with different valuations • Asset accounting processes in consideration of different valutions Key Process Steps • Valuation of open items and balances in foreign currency • Regrouping of receivables and payables • Creation and reversal of accrual/ deferral documents by ledger group • Balance Sheet and P&L StatementMaster Data Maintenance • Asset master data maintenance • Analyze value changes of individual asset master record • Asset Acquisition with accounts payable/ with clearing accounts • Activation of intangible assets according to IFRS • Asset retirement with revenue and customer • Fixed assets – periodic processing and reporting

  3. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement Package 5 for SAP ERP 6.0 • Company Roles • Assets Accountant • General Ledger Accountant • Finance Manager

  4. Detailed Process Description(I) • Closing process in FI with different valuations • Valuation of open items in foreign currency • Valuation of balances in foreign currency • Regrouping of receivables and payables • Creation and reversal of accrual / deferral documents by ledger group • Balance Sheet and P&L Statement

  5. Detailed Process Description(II) • Asset accounting processes in consideration of different valuations • Asset master data maintenance • Analyze value changes of individual asset master record • Asset Acquisition with accounts payable / with clearing accounts • Activation of intangible assets according to IFRS • Asset retirement with revenue and customer • Fixed assets – periodic processing and reporting

  6. Process Flow Diagram Closing process in FI with different valuations Event Revaluation Reporting Regrouping Accruals / Deferrals Finance Manager Creation and reversal of accrual / deferral documents by ledger Balance Sheet and P&L Statement Update Exchange Rates Regrouping of receivables and payables Revaluate open Items Revaluate open Items

  7. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision

More Related