Table of contents
1 Objective and Scope
1.1 Objective of this Procedure
1.2 Scope
2 Reference Documents
2.1 Site Service Excellence- ID Closing Management (Asset closing statement):
2.2 FI-AA check
3 Definitions
3.1 Abbreviations
3.1.1 Responsibility
4 Procedure
4.1 Prerequisites
4.1.1 Procedure AFAB –Depreciation Run for both systems (PF2/WP2)
5 Planned postings run for both systems (PF2/WP2)
6 Repetition or Unplanned Run for both systems (PF2/WP2)
6.1 Manual depreciation
6.2 Unplanned depreciation
6.3 Write-up
6.4 Posting of total remaining depreciation of an asset with straight line depreciation
6.5 Reversing manual depreciation
6.5.1 Write-up
6.6 Reversal
7 Elimination Posting
7.1 Transaction Z1AANNUL for PF2 companies only ( ZGF_AANNAM for Mercosur companies)
7.1.1 Table Z1ACO
8 Transaction SQOO for PF2/WP2 
8.1 Query: Z1A_CHECK_AFAB
9 Transaction AFBP for PF2/WP2 
10 Exceptions to repeat depreciations after D-3
10.1 Authorized Exceptional Repetition after D-3

Objective and Scope

Objective of this Procedure

This document describes the AFAB transaction to prepare and execute the depreciation run as well as postings to finalize monthly closing procedure in asset accounting.

Scope

This document includes the necessary steps to run properly AFAB transaction for depreciation run used in the current ERP system (PF2&WP2).

Reference Documents

Site Service Excellence- ID Closing Management (Asset closing statement):

GBS-P-DRTR-09-006 ID Closing Management.doc

FI-AA check

GBS-OP-DRTR-09-016 Control of the Integration between FI- GL and FI-AA

Definitions

Abbreviations

Responsibility

GBS MAC SU: Manage and execution of depreciation runs and will perform the following steps:

• Check error list of depreciation run;
• executes Z1AANNUL ( For PF2);
• Check differences between FI and FI-AA.
• Manages repetition and additional depreciation runs.

Procedure

This section describes the necessary steps for monthly and annual depreciation run and its prerequisites. Every asset transaction in the (PF2&WP2) System FI-AA component immediately causes a change of the forecasted depreciation. However, it does not immediately cause an update of the depreciation and value adjustment accounts for the balance sheet and profit and loss statements. The planned depreciation is posted to the general ledger when you run the periodic depreciation posting run. This posting run posts the planned depreciation for each posting level for each individual asset as a lump sum amount.

Prerequisites

Before the depreciation run starts (according to the document related to Assets closing statement), the following steps have to be executed and possible faults have to be corrected:

• All WBS elements of investment, demolition, preliminary study cost and start up cost projects have to be settled to asset under construction/completed asset or cost center
• The completeness of WBS element settlement has to be checked by using transaction ZZJP1000 (PF2 system) and ZWFAR577 - Not settled WBS elements (WP2 system)
• The periodic posting – transaction ASKB – has to be executed.
• In some cases, assets are not depreciated straight line with a defined useful lifetime. The depreciation depends on the number of production units.(Manual Depreciations)
• There could be several reasons for unplanned depreciation, e.g. the shutdown of an activity or impairment test.

Procedure AFAB –Depreciation Run for both systems (PF2/WP2)

Menu Path

Accounting  Financial Accounting  Fixed Assets  Periodic Processing  Depreciation Run  Execute


Run AFAB – Depreciation Posting Run Transaction




Data to enter: Company code; Fiscal Year and Posting period
Flag: Planned Posting run
Do first in Test Run.

Then look for test run message, search in the bottom for this message.

Test run completed successfully.

To run it in actual always choose to execute it in background or Press F9.




The depreciation run is normally ran in FCC as part of the monthly closing.
If it has to be ran outside of schedule manager, executing in background above, you will receive a screen with "background print parameters."
Select print from page 1 to 1 then select the green check.
At the next screen, select "immediate" to send the job immediately.
You can check in FS10N to see the posting when the job is completed.

Planned postings run for both systems (PF2/WP2)

Monthly and annual depreciation run are started automatically inside closure according to the established time schedule. The depreciation run generates the postings on accounts and cost centers.
Please refer to documentation link below for AFAB (Planned posting Run):
Once AFAB is processed it will generate the posting.
The generated and processed "Job sessions" in SM37 have to be checked next morning. Call up transaction SM37 and select user name"" and "insert the Job name "*RAPOST. If we have in SM37 a "Error " message we need to do a Restart of the AFAB.

Repetition or Unplanned Run for both systems (PF2/WP2)

Normally neither repetition nor unplanned run are necessary. If it is unavoidable, contact the responsible colleagues in the IS department.
Take always into account, that a repetition run could have an impact on other parts of the closing procedure (e.g. cost centers or general ledger). Whenever we had already run the AFAB and some changes happen we need to repeat it again. Therefore, when we execute manually the AFAB we should flag the option "Repeat"

Manual depreciation

In some cases, assets are not depreciated straight line with a defined useful lifetime. The depreciation depends on the number of production units/degradable volume etc.


Examples are:
Limestone quarries (volume of limestone )
Caverns (volume of salt or brine)
Dumpsites (volume of waste)
Ore Depletion (Tons of ore mined)




In these cases depreciation per unit has to be calculated and multiplied with the annual volume and the following steps are needed:

• The plant gives information of production units to local asset accounting.
• The manual depreciation is calculated outside the system (depreciation per unit multiplied with the annual volume) – the result is the input for manual depreciation.
• The manual depreciation is posted in FI-AA.

.


To post manual depreciation, enter in transaction ABMA and make the required entries:

• • Company code
  • Asset number
  • Posting date and period
  • Transaction type (normally 600)

Then, press enter or
In the next screen, make the following entries:
Amount posted
Asset valuation data
Text
Reference (if needed)

and press "Enter"
In the next screens, check the depreciation amount in the different depreciation areas:

press "Enter" or

Finally: do not forget to save your data!

The amount of 254.100,00 € will be part of the next depreciation run.

Unplanned depreciation

There could be several reasons for unplanned depreciation, e.g. the shutdown of an activity or impairment tests (see reference documents).
In these cases, the following steps are needed:

• The plant, marketing department, management etc. gives information of shut down/result of impairment test to local asset accounting.
• The unplanned depreciation is calculated outside the system.
• The unplanned depreciation is posted in FI-AA.

To post unplanned depreciation, enter in transaction ABAA and make the required entries:

• • Company code
  • Asset number
  • Posting date and period
  • Transaction type (important: 640)

Press "Enter"

The further steps are identical with above described manual depreciation.

Write-up

To reverse unplanned or manual depreciation, call up transaction "ABZU".
Make the required entries:

• • Company code
  • Asset number
  • Posting date and period
  • Transaction type (700)

Press "Enter"

Then, press enter or
Insert the asset valuation date;
Choose, what type of depreciation has to be reversed:

• ordinary/normal
• special (e.g. tax)
• unplanned

The decision has an impact on the account to be posted.
Insert a text (reason for reversal)

If you select the value and then click in LINE ITEMS, it is possible to include/exclude depreciation areas from posting (see above "manual depreciation").

Finally: Click on button "Posting" !

Posting of total remaining depreciation of an asset with straight line depreciation

There could be a case where the local wants to fully depreciate an asset that is currently being depreciated under normal straight line rules in a single period without performing a retirement of the asset or posting an unplanned depreciation.
In this case, we need to perform some changes in the master data of the asset to be fully depreciated. Go to transaction AS02 and insert the asset number to be changed:

Next, enter the tab "Deprec. areas"

In this tab, change the "UseLife" field of the Group Depreciation (area 50) to 0, and insert "1" in the "Prd" field.

This will effectively make the asset fully depreciate in a single period of depreciation, as seen in transaction AW01N, for depreciation area 50:

After saving your changes, it's necessary to run AFAB for the concerned period.
After AFAB is run, your asset depreciation map will look like this:

As you can see, the remaining depreciation for this asset was fully posted on period 9.

Reversing manual depreciation

Write-up

Write-up is one of the options to reverse unplanned or manual depreciation by calling up transaction "ABZU".

Make the required entries:

• • Company code
  • Asset number
  • Posting date and period
  • Transaction type (700)

Press "Enter"

Then, press enter or
Insert the asset valuation date;
Choose, what type of depreciation has to be reversed:

• ordinary/normal
• special (e.g. tax)
• unplanned

The decision has an impact on the account to be posted.
Insert a text (reason for reversal)

If you select the value and then click in LINE ITEMS, it is possible to include/exclude depreciation areas from posting (see above "manual depreciation").

Finally: Click on button "Posting" !
It generates a reverse posting with opposite sign.

Reversal

Elimination Posting

Transaction Z1AANNUL for PF2 companies only ( ZGF_AANNAM for Mercosur companies)

The current philosophy of accounts is based on numeric accounts for group and alphanumeric accounts for local purposes.
To make possible, that reports can display group or local values as well as the difference between both of them, a third account group is necessary. They are called elimination accounts, have always a letter in the first and a "9" in the last position.

Table Z1ACO

Elimination accounts exist in parallel to group accounts. The corresponding accounts are linked in table Z1ACO (transaction SM30):

Call up transaction Z1AANNUL (or (ZGF_AANNAM for Mercosur companies – the information needed is exactly the same for both transactions). Select a variant (if available) or make necessary entries (red framed).

In order to filter the batch creation for Z1AANNUL (or ZGF_AANNAM) data and to assure that the Batch created in SM35 will respect the variant and the concerned fields information filled in transaction Z1AANNUL (ZGF_AANNAM), we must add always in the "INPUT FILE FOR RFBIBL00" field /var/extract/PF2/assetfile_rfbibl00 followed by "_company code", as it follows:
/var/extract/PF2/assetfile_rfbibl00_XXXX
Start a test run without generating a batch input session



Check balance on company code level; it must be zero!

If the balance is not zero, compare chart of accounts and entries in table
Z1ACO. Make sure that the table is completed.
If the balance is zero, start Z1AANNUL (or ZGF_AANNAM) again and generate a batch input session .

SM37

Transaction SQOO for PF2/WP2

Query: Z1A_CHECK_AFAB

We use this transaction to see if after the Depreciations had run in AFAB, any issue was detected for each company for PF2 system.


Click on Execute:

Insert the following fields

Note: Normally to see if everything was posted correctly use in field "Indicator" option nº 1.

After execute the transaction you shouldn't have no Data. Otherwise, it will inform you about the issue for the company you are analyzing.

Transaction AFBP for PF2/WP2

In this transaction we can see the spool of all the depreciation posted. In this report we can check what was posted each month and in the previous months.
Between the two systems the only thing that be different (change) is the depreciation area where the documents are posted:
For instance:
For PF2 system we could have: area 01; 03; 50; 55; 57
For WP2 system we could have: area 02; 45; 46; 01; 32


Execute it:


After the depreciation were posted its necessary to proceed to the check FI-AA. See in the reference session the Link to the Operational Procedure.

Exceptions to repeat depreciations after D-3

Authorized Exceptional Repetition after D-3

• Depreciations that have an impact >50KEuros in the P&L
• Statutory closing period
• Merger-Divestment-Acquisitions closing period
• Technical issue Detected through Query Taba (issue on depreciation posting job, repetition in the period needed)
• Exceptional agreement provided by SU MAC I&D key user

End of document