India GAAP vs US GAAP
Hi
Please let me know how to configure India GAAP and US GAAP in SAP system.
Provide me any referace documents.
Thanks
Babu
Another way of doing is using leading and non leading ledgers in New GL functionality instead of using FI SL which requires additional configuration requirement. New GL has brought in the additional functionality available in FI SL.
Pl read the following link
http://help.sap.com/erp2005_ehp_02/helpdata/en/2d/830e405c538f5ce10000000a155106/frameset.htm
Similar Messages
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Indian GAAP vs US GAAP diff amount
We are maintaining different Gross Block values in Indian GAAP and US GAAP
Client wants to reduce the amount of the asset in ONLY Indian GAAP without affecting the US GAAP value. If we post a credit memo it reduces the amount in US GAAP also.. How to reduce the value of an asset only in Indian GAAP without affecting the USGAAP value.
plz helpHi,
Make a copy of the required transaction type and then limit it to post only in your Indian Dep.Area.
Kind regards -
Hi gurus
How can I use the sistem for report financial statements in MEX GAAP and US GAAP ipm using the version 3.1 SEM BCS and I need to extract data from system extern and like excel and the same system in version ECC 5.0.
My user wants automatize the conciliation with US GAAP and MEX GAAP.
thanks
best regardsYes I hope too
but how can i do it?,
have some body had this kind of requeriment in some one enterprise?
I think that BW could help me and I don´t know how.
thanks -
Hi,
my clients is Indian company. Now they wants implement SAP (ECC 6). They are asking, other than standard ledger they want US GAAP and IFRS reports also.
So can some one tell me how to configure this in SAP and what are the impacts on other modules if we activate Parallel Accounting.
Thanks
Rams NHi,
Parallel Accounting supports multible accounting principles. For your client Accounting principle reporting requirements could include local Generally Accepted Accounting Principles (GAAP), US GAAP and International Financial Reporting Standards (IFRS).
SAP Provides Additional Ledger feature from ECC 5.0 onwards. With this feature Data recorded in the general ledger is recorded in multiple ledgers. That means apart from the leading ledger you can maintain 2 additional ledger to fulfill your requirement i.e. Local GAAP and US GAAP. The ledgers are assigned to specific Accounting Principles and difference postings can be recorded to specific ledgers through a single user interface. Foreign currency valuation methods can be assigned to specific ledgers and fixed asset accounting for various accounting principles is managed through the use of depreciation areas and ledgers.
When it comes to impacts i worked on FCV, Asset Depreciation and Accrual Engine using the New GL with ECC 6.0. I have identified below changes during my workout. May be some more impacts might be there in other application areas with the introduction of parallel ledger.
1. In asset accounting ledger groups are assigned to the depreciation areas. Consequently, postings are made to separate ledgers in FI. The leading ledger has to be assigned to depreciation area 01.
2. Within the General Ledger Receivables / Payables / foreign currency balance sheet accounts may be valuated differently on the basis of different accounting principles. Accruals and deferrals need to be allocated to the relevant periods. The use of parallel accounting may mean that different accrual/deferral postings need to be made, depending on the accounting principle. This needs Assignment of the accrual method to the accounting principle (determination of the ledger group).
Hope it will give some inputs to your requirements.
Regards,
Krishna Kishore -
Low value asset management as per US GAAP
Hi All,
I have a question regarding management of low value asset as per US
GAAP. US GAAP specifies that all asset below US$2500 are treated as low
value asset and should be expensed off immediately. This means that no
asset should be capitalized below US$2500. I understand that, way to
handle this is to set a low value asset class based on value/quantity
and against specific depreciation area and set maximum amount limit for
LVA against a company code.
But this will still capitalize the LVA and one has to depreciate the
same in next month. We want to find out a way if we can avoid
capitalizing LVA i.e. value of asst for US GAAP depreciation area will
be zero (which is a book depreciation area) whereas asset will have
values in other depreciation area. Subsequently we would like to post an
expenses entry against the asset in US GAAP book.
In a nutshell, I would like to find out if I can avoid capitalizing the
asset in US GAAP book, but want to have value for other depreciation
area. Subsequent to purchase, I would like to expensed the asset by way
of FI JV.
Anybody has tried this ever before?Hi,
I think you should create a new asset transaction type, which will post only to the other depreciation areas apart from US GAAP. Then at the time of capitalizing that asset, when we are entering this asset transaction type, then the system will update only the other depreciation areas. For the US GAAP, an FI JV has to be passed.
Hope that helps
Regards
Venkatesh -
Special GL or new company code
Hi Experts,
We are on ECC 6.0 but new GL is not activated.
Currently there is a India company code but operating under US GAAP, now they want to roll out and use local accounting standards.
Options are
1. create new special ledger or
2. create new company code for statutory purposes while retaining current company code for India for U.S. GAAP reporting
Which option will be more beneficial if the long term plan is to migrate to NEW GL
Thanks,Hi,
In your environment the Special ledger is a better option. If you are creating new company code, same transaction you have to enter in both the company codes it will require more man hours.
Prasad -
Accounting Principles and Ledger Groups
Dear All,
I have just discovered that for a previous project in my current Client that 3 of the ledger groups were never assigned an Accounting Principle.
Based on this SAP will post to these sub-ledgers based on the Accounting Principe assigned to the 0L Leading Ledger. Since all post via "GAAP" based principles will there be any impact on now creating new Accounting Principles for these ledgers/ledger groups?
The missing details relate to India GAAP and China GAAP. Assets posting seems to be OK based on the existing postings, but only the foreign currency valuation is missing as it was never done between the valuation area and the accounting principle were never assigned!!
Any opinions?
Regards
WazaBut by assigning the ledger group previously created to the new accounting principle will this then have any issues in our postings?
Obviously we will do the testing, especially for assets, etc.
Regards
Waza -
Useful Life in Dep Key "to the day"
Hi,
we have two depreciation areas one for IN gaap and the other for US GAAP. In GAAP has depreciation keys with "to the day" feature and the US GAAP has depreciation keys created with useful life feature.
Now the issue is since useful life has got no role in the case of IN GAAP, whenever we create asset we press enter enter and the same usefule life as per US GAAP get copied in the US GAAP also as it has no relevance for calculation.
The problem is that if i enter only period 1 as useful life for US GAAP( meaning that the asset is to be fully depreciated in one month for US GAAP purpose) and the same period 1 is entered in IN GAAP. then for IN GAAP my full asset is getting depreciated in 6 months wheras the depreciation key assigned to it is 13,91 wdv method( with to the day tick).
I changed the period 1 and made it 999 for IN GAAP purpose and tested it in test system and then system is showing correct values.
Can anyone throw some light on this issue as to why it is changing in case of useful life when the dep to the day is ticked in depreciation key.
Regards,
SAPFICO..
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Parallel ledger - posting in one ledger only - Open Item managed account
Hello all,
We have a requirement which necessitates posting some entries in one ledger only for the purpose of complying with more than one GAAP. (US GAAP and local GAAP). However we understand that such postings cannot be made to GL accounts which are open item managed.
Is there any workaround for this? How do we get around this?
Regards
SukumarHi Sukumar,
According to my understanding, directly postings to GLs is possible in case of 'Open Items Managed' GLs. To ensure parallel accounting with different GAAPs, you must have defined Leading & Non-leading Ledgers. You can pass entries directly to Non-Leading Ledgers to ensure compliance with the relevant A/cing stds.
Regards,
Amish. -
Reval for New GL - local ledger (Z5)/Leading Ledger (OL)
I would like to find out if it is possible to restrict someone access to only running reval on the local ledger, but not on the leading ledger. The purpose is that we would like the local accountants to run reval on the local book (Z5), but we do not want the local accountants to be able to run reval on the leading ledger. Is this is possible? If so, how?
TRy this method.
firsr create Accounting priciple and assign to the ledger group.
1) Financial Accounting (New)-Ledgers-Parallel Accounting-Define Accounting Principles
2)Assign Accounting Principle to Ledger Groups
3)then in General Ledger Accounting (New)-Valuate-Define Valuation Methods, Define Valuation Areas, Check Assignment of Accounting Principle to Ledger Group (here assign the principle that you have created in the first step.
4)Assign Valuation Areas and Accounting Principles
This should solve your problem.
You need to creare accounting principles for local gaap and global gaap and do accrodingly.
reward if useful.
sarma -
I want to load XBRL taxonomy into Oracle GL.
I visited http://www.xbrl.org/FRTApproved/ --> XBRL US GAAP Taxonomy 2009
But don't know which files to download for US GAAP taxonomy.
Can any one tell me which files I should download which can be loaded into Oracle GL?
Any help is appreciated.
-DevidasYes I checked that link.
Under "Taxonomy schema file" there are 4 .xsd files.
http://taxonomies.xbrl.us/us-gaap/2009publicreview/non-gaap/country-2008-10-31.xsd
http://taxonomies.xbrl.us/us-gaap/2009publicreview/non-gaap/country-std-2008-10-31.xsd
http://taxonomies.xbrl.us/us-gaap/2009publicreview/non-gaap/country-ent-2008-10-31.xsd
http://taxonomies.xbrl.us/us-gaap/2009publicreview/non-gaap/country-all-2008-10-31.xsd
Then in row "References to other XBRL modules" there are 2 files.
http://www.xbrl.org/2005/xbrldt-2005.xsd
http://www.xbrl.org/2006/xbrldi-2006.xsd
My question is do we need to upload these 6 files?
-Devidas -
Hi All,
It's a US company in China, but functional currency is USD.
So customer would like set local currency as USD. but from China GAAP reporting, we also need financial reports in RMB.
Leading ledger: 0L: For US GAAP,
1st local currency: USD
2nd local currency: Group currency profit center valuation -USD
3rd local currency:Group currency legal valuation -USD
Non-leading ledger: Z1 :For China GAAP
1st local currency: USD (should be same as leading ledger as SAP required)
My question is, how I could get China GAAP RMB report from SAP directly?
2nd and 3rd local currency of Z1 should be selected from currency types defined in leading edger.
If the solution is not available from 2nd and 3rd currency, are there any possible solutions?
Thank you ~
LynniThank you Sanil,
Your proposal is current configuration.
But now functional currency for China company is USD.
Since main business is settled in USD (According to US GAAP or China GAAP)
And it is allowed to set local currency in other currency rather than RMB.
So if local currency is USD, then it will be more accurate for FI postings.
But we also need RMB report to meet local statuary report requirement.
Hope I explained it more clear.
Thanks.
Lynni -
Hi Experts,
i am trying new GL,i created one non-leading ledger(say Z1) in the system,i have questions below:
1)can i post FI posting to non-leading ledger only?it means this FI posting can not reflect in leading ledger
2)how can i select ledger which i want to post to?for example,i use FB50 to enter FI posting,can i select ledger in FB50?
appreciate your helpthanks for promt answer.
i need to meet the requirement for both US GAAP and Chinese local GAAP,mean i need to generate bal and PL for us-gaap and local-gaap respectively,thats why i thinking about new GL,can i create 2 ledgers for US GAAP and chinese GAAP respectively,so for manual posting,i can select ledger to post to US GAAP or Chinese GAAP.
1)how about for auto posting,e.g depreciatoin posting,post depreciation area 01 to ledger 1 and post depreciation area 02 to ledger 2,can i do that?
2)for order settlement,i need to recogize revenue in ledger 1 and need to reverse those revenue in ledger 2,but order settlement will create auto posting,how can i control the ledger.
if i can not control ledger for auto posting,mean all auto posting will post to leading ledger and non-ledger,so i have to make some manual reverse in one ledgers
anybody has experience for above issue? -
Hi,
I would like to use mutiple valution to meet report requirement. In our company, we have to provide two sets report which comply local GAAP and group GAAP, CO will using group GAAP. For example, certain transaction will belong to cost in local GAAP, however, it should belong to G&A expense in group GAAP. This means the product cost are different.
I tried to using additional account plus mutiple valuation solution to solve this problem , I created three actual version in controlling area,also did many settings to active mutiple valution. After that, we can see the leagl/group/profit center valution view in material ledger(CKM3).
For above case, the corresponding cost center will output a activity to production order. However, I do not know how to allocate this expense to the specific production order version(local GAAP). would anyone has experience for this? or would anyone tell me which manual can be used?
any suggestion would be appreciated.
BenHi Ben,
Activity types support parallel valuation in the way that they have prices in all valuations.
You can view that witn transaction CKMLLASHOW. But this has only an effect if you use the actual activity price in material ledger settlement. Then the activity prices in parallel valuations will be used for the parallel valuations of the products.
The calculation of actual activity prices (KSII) takes the costs in their respective valutions into account, e.g. in materials consumptions for cost center or direct postings.
I am afraid I confused more than gave assistance, but this is a very complex topic that cannot easily be explained in a short response.
best regards,
Udo -
Dear Seniors,
What is the functionality of ASKB. How exactly it picks the figures for the line items.
As per my knowledge, ASKB posts the difference in Depreciation posting of two different books are posted. Let's say for example, difference in Depreciation adjustment entries between INGAAP and USGAAP willl be posted to INGAAP books.
But, in our case, one entry is posted to Clearing Revenue GL also. How this GLs are picked and what is the reason for picking clearing revenue GL?
Thanks and Regards
KVKRHi,
The basic issue is, when we run ASKB, Clearing revenue GL should not be hit. But, in one of the cases it is happening like that. I would like to know the scenarios when the clearing revenue GL is hit, while doing ASKB.
I would like to give an example, how ASKB works. (This is a real case from the production system )
Descriptions of the GLs involved in the transactions are given below -
573102 - Loss from disposal - machinery/equipment
573103 - Profit from disposal - machinery/equipment
573104 - Clearing revenue for assets sales-Mach & Eqpt (Cr)
21400001 - Plant and machinery - General
21400016 - Vehicles
21450015 - Accum Depreciation- Vehicles
When we sell assets the following documents will get posted in both IN and US GAAP books
Vehicles
573102 Dr 667410.27
573104 Dr 133332
21400016 Cr 1821380
21450015 Dr 1020637.73
573102 Dr 180872
573103 Cr 40449
573104 Dr 283628
21400001 Cr 424051
Entries should have been
in US GAAP
GL Debit Credit
573102 667410.27
573104 133332
21400016 1821380
21450015 1020637.73
573102 180872
573103 40449
573104 283628
21400001 424051
in IN GAAP
GL Debit Credit
573102 816313
573104 133332
21400016 1863059
21450015 913414
573102
573103 283628
573104 283628
21400001 0
So, ASKB posts the following entry
*only in IN GAAP *
GL Debit Credit
573102 275147.12
573103
573104
21400016 41679
21450015 107224.88
21400001 424051
Now, the doubt is the above example is a peculiar case, where, even the Gross Block values in IN GAAP and US GAAP books are different. Even in this case, while doing ASKB, Clearing revenue GL is not coming.
But, in one of the cases of our organization, when we run ASKB for a particular month, system is showing 7 million figure in Clearing revenue GL. What could be the reason for this?
According to my understanding, Clearing revenue GL should not be hit at all.
Plz advise.
Regards
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