How to Use SAP's Multiple Calendar Tool for Asset Accounting to Manage Multiple Fiscal Calendars

  • by Eric Barlow, Managing Partner, Serio Consulting
  • June 19, 2014
Discover how the Multiple Calendar Tool from SAP solves the requirement to create financial statements or tax values in more than one fiscal calendar.
Learning Objectives

By reading this article, you will learn how to:

  • Use the Multiple Calendar Tool add-on from SAP for accurate reporting in different fiscal calendars
Key Concept

The Multiple Calendar Tool is an add-on component to Asset Accounting that provides the required functionality to facilitate the creation of accurate financial statements for different fiscal calendars. The tool is purchased separately and used with Asset Accounting.

Many companies face a new requirement to manage and create financial statements for more than one fiscal calendar. This requirement can be driven by local accounting rules or tax laws and requires a full set of financial statements in both fiscal calendars.

One example is a multinational company doing business in Japan and using a 4-5-4 fiscal year for its consolidated financials. Japan Generally Accepted Accounting Principles (GAAP) reporting requires the company to produce financials on a January to December calendar as well. The SAP General Ledger can manage multiple fiscal years through the implementation of leading and non-leading ledgers. This scenario is set up with the leading ledger using the 4-5-4 fiscal calendar and the non-leading ledger using a January to December calendar.

The system automatically maps the postings to different fiscal periods and years by ledger. Reporting by ledger is standard and allows for easy creation of financials by ledger or fiscal calendar. If you aren’t using Asset Accounting in your SAP system, then your solution is complete. However, if Asset Accounting is part of your SAP solution, then there are additional considerations.

Asset Accounting in an SAP system cannot manage multiple fiscal years with differing beginning and ending dates in one company code. This has been a limitation since the beginning of SAP Asset Accounting and hasn’t changed with the SAP General Ledger functionality. If a company faces the dual calendar requirement, Asset Accounting is usually the most crucial piece when producing two sets of financial statements.

When an asset is retired, sold, or transferred from a company, the proportional depreciation is calculated using the convention of the applicable standard (e.g., US GAAP). The proportional depreciation can differ by fiscal calendar depending on the depreciation rules for the relevant GAAP. The proportional depreciation is calculated based on the fiscal year calendar of assigned company code, not the general ledger (G/L) to which it is posted. Therefore, a standard SAP system cannot satisfy the requirement because the differing valuation isn’t as simple as mapping the periods.

 

Eric Barlow

Eric Barlow is a managing partner at Serio Consulting.

See more by this author


Comments

No comments have been submitted on this article. 


Please log in to post a comment.

To learn more about subscription access to premium content, click here.