SAP Knowledge Base Article - Public

2763412 - Mid-Month Convention: Changed System Behaviour

Symptom

With release SAP S/4HANA Cloud 1902, there is a functional change in Asset Accounting which is relevant for all customers with active company codes in the country USA, but not for customers who scoped US Corporate GAAP only.

Environment

  • Financial Accounting (FI)
  • Asset Accounting (FI-AA)
  • SAP S/4HANA Cloud Edition 1902

Cause

For company codes in the USA, there is a change when you create a fixed asset in the IFRS valuation and in the central U.S. GAAP valuation: In order to fulfill the requirements of the mid-month convention, there is now a different period control with 24 real calculation periods. With SAP S/4HANA Cloud 1902, the system behaviour has changed and the fiscal year variant for affected company codes has been automatically replaced by a new fiscal variant with 24 real periods (instead of the previously used 12 periods). The change is only relevant for Asset Accounting; the fiscal year variant used in the general ledger remains unchanged.

Because of this, the system proposes different depreciation keys than before, when you create a fixed asset.

For tax purposes, US-GAAP requires the calculation of depreciation to be based on 24 periods. In previous releases, SAP S/4HANA Cloud emulated this behaviour albeit using a fiscal year variant with 12 periods only.

Resolution

What You Need to Take into Account:

Specifying Useful Life in Asset Master Data

The changed system behaviour impacts several apps in Asset Accounting. Affected are those apps where you need to specify the useful life in periods, i.e. apps where you create or change asset master data and apps where you transfer legacy assets:

  • Create Asset
  • Create Asset Subnumber
  • Change Asset
  • Create Asset Master Record – For Legacy Asset
  • Create Asset Subnumber – For Legacy Asset
  • Post Transfer Values – For Legacy Asset
  • Migrate Data (S/4HANA migration cockpit), using Fixed Asset as migration object

Example:
In previous releases, you would have entered 4 years and 5 periods (representing 5 months) for the useful life; now you have to enter 4 years and 10 periods instead.

Using a Customer-Specific Fiscal Year Variant
If you plan on using a customer-specific fiscal year variant (such as 4-4-5), you need to consider doing the following: Create a similar one with 24 periods (for asset accounting purposes only) which has the corresponding period control data.

Keywords

U.S. GAAP, US-GAAP,  IFRS, USA, 24 periods, 4-4-5, behavior, copy, imitate , KBA , FI-AA-AA-A , Master Data , FI-AA-IS , Information System , FI-AA-AA-B , Transaction Figures / Valuation , FI-AA-AA-A-2CL , Master Data (Public Cloud) , How To

Product

SAP S/4HANA Cloud 1902