Tips on How to Open the Prior Fiscal Year in Asset Accounting for Tax Depreciation Adjustments
- by Jerry Lucas, Consultant, Bloomin Brands, Incorporated
- October 4, 2016
Learn the steps necessary to open the prior fiscal year and allow tax depreciation adjustments to individual asset records in SAP Asset Accounting (FI-AA).
There are several steps necessary to open a prior fiscal year in SAP Asset Accounting (FI-AA) and allow tax depreciation adjustments to individual asset records. Some of the steps are obvious, but one is not, and my goal is to clarify them all. These steps are necessary for posting updates or adjustments for bonus depreciation, adjustments for repair and maintenance regulations (481a), or other tax depreciation adjustments that are specific to tax and not Financial Accounting (FI) depreciation areas. One important thing to note is that the FI books are never opened during this process. They remain closed throughout, and no updates are made that affect or update closed financial periods.
Before any tax adjustments are made, it may be necessary to create or modify one of the transaction types needed for the posting process. Using transaction code AO78, you can create or modify asset transaction types. With transaction code OAXE, you can modify which areas are posted with a transaction type. In Figure 1, from OAXE, you can see that the transaction type will only post the tax areas 10, 12, 13, and 14.
Configure asset transaction types for specific areas
The next step in the process to open a prior fiscal year is done using the transaction code OAAR. This code opens the prior tax years. In Figure 2, you can see the fiscal years that are closed for 2015, and where the tax areas are opened for 2014, for company code C001. This allows you to make adjustment postings in the areas 10 to 15 without having the SAP General Ledger accounting periods opened for the same time frame. Using this process, you do not need to open the accounting periods via transaction code OB52. Keep in mind that in the scenario I describe here I assume that your tax depreciation areas are set up as statistical in nature and that they do not update any FI ledger balances.
Open the prior fiscal year for tax areas
The second step in the tax adjustment process is to post the specific value modification to the asset. If multiple assets are to be posted, it would be a good idea to have the entries prepared in advance and have a tool to help automate the process. Typically, transaction code ABSO can be used to post the tax adjustment.
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