4. Who is Serio Consulting?
f f SFounded by a group of former SAP America Platinum
Consultants with over 40 years combined SAP experience
Focused on the Capital Management area of SAP across both
SAP ERP and SAP BW
Project Systems (PS)
Investment Management (IM)
Asset Accounting (FI-AA)
Professional Service Offering:
SAP Implementations and UpgradesSAP Implementations and Upgrades
Quality Assurance and Configuration Reviews
Advanced Capital Management reporting solutions including BW
Advanced Tax solutionsAdvanced Tax solutions
Remote On-Demand consulting
http://www SerioConsulting com/
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #4
• http://www.SerioConsulting.com/
5. Scope of New Depreciation Calculation (New DCP)
• What does the New Depreciation Calculation refer to?
How depreciation amounts are calculated / planned
• It does not refer to…
How depreciation is posted
The process to gather depreciation figures and post them to the G/L
is covered by the depreciation posting program RAPOST2000
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #5
6. What Values Are Affected?
• All planned values including:
Planned ordinary depreciation
Planned special depreciationPlanned special depreciation
Interest
Inflation
Revaluation
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #6
7. Why Was the Calculation Changed?
A period interval-based calculation is more intuitive and easier
to understand
Support of time-dependent depreciation parameters
Support of method changeover and base value determination on
a period level
More flexibility to support customer and country specificMore flexibility to support customer and country specific
requirements via Business Add-Ins (BAdIs)
Potentially greater performance
Better handling of rounding accuracy issues related to large
amounts with no decimals (e.g., currency JPY)
… and many other reasons (mostly country specific)y ( y y p )
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #7
8. Technical Requirements
• Delivered in SAP ERP 6.0 as part of the Enterprise
AddOn for Financials (EA-FIN)
Not possible to release for earlier SAP ERP or SAP R/3 versionsNot possible to release for earlier SAP ERP or SAP R/3 versions
EA-FIN must be active
The new calculation cannot be disabled using
standard methods other than deactivating EA-FIN
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #8
9. Old: Transaction-Based Calculation
• Prior to SAP ERP 6.0, depreciation was always
calculated in detail on every transaction line item
Whenever a transaction is posted a depreciation amount wasWhenever a transaction is posted, a depreciation amount was
calculated
The asset line item table contained fields for:
O di d i ti t tiOrdinary depreciation on transaction
Special depreciation on transaction
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #9
10. Old: Transaction-Based Calculation (cont.)
• All transactions were interpreted sequentially
First posting served as the “baseline” calculation
All subsequent postings were adjustments to theAll subsequent postings were adjustments to the
original posting
• Annual depreciation = sum of the depreciation of thep p
individual transactions
This approach could make the verification of depreciation
figures difficultfigures difficult
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #10
11. Example of Transaction-Based Calculation
• Scenario
Straight line depreciation
Total Acquisition Cost (APC) / Total Useful Life (UL)Total Acquisition Cost (APC) / Total Useful Life (UL)
Useful life = 10 years
12 period calendar fiscal year: January – December (e.g., K4)
Period control = pro rata determination
• The following two transactions are posted:g p
Transaction Amount / Percentage Time
I iti l A i iti $12 000 J 1Initial Acquisition $12,000 January 1
Partial Retirement (current year) $3,000 October 1
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #11
12. Example of Transaction-Based Calculation (cont.)
Date Transaction Type Transaction
Amount
Period
Factor
Rate Base Value Calculated
Depreciation
Jan 1 Initial Acquisition $12,000 12 / 12 10% $12,000 - $1,200
Total - $1,200
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #12
13. Example of Transaction-Based Calculation (cont.)
Date Transaction Type Transaction
Amount
Period
Factor
Rate Base Value Calculated
Depreciation
Jan 1 Initial Acquisition $12,000 12 / 12 10% $12,000 - $1,200
Oct 1 Partial Retirement - $3,000 3 / 12 10% - $3,000 $75
Total - $1,125
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #13
16. Example of Transaction-Based Calculation (cont.)
Asset Explorer
•R/3 4.7
displayed the
depreciation
amounts
calculated for
each line item
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #16
17. Example of Transaction-Based Calculation (cont.)
• Asset Line Item table displayed the amounts in
additional detail
•R/3 4.7
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #17
18. New: Period Interval-Based Calculation
• Depreciation calculation is based on period intervals
(time segments)
All transactions in the same period interval are aggregated andAll transactions in the same period interval are aggregated and
used to calculate depreciation as a single number
All line items are aggregated by their appropriate period
All periods are aggregated to get an annual value
• Annual depreciation = sum of the depreciation of the
period inter alsperiod intervals
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #18
19. New: Period Interval-Based Calculation (cont.)
• SAP ERP 6.0 no longer calculates depreciation or
interest on asset line items
•ERP 6.0
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #19
20. What Is a Period Interval?
• Initially, there is just one time interval per year,
depreciation area, and amount type
N t t d h t h• New segments are created whenever an event changes
the asset’s value, such as:
Transactions within fiscal yearTransactions within fiscal year
Time-dependent master data changes
Shutdown or multiple shift intervals
D i ti t hDepreciation parameter changes
Changes to depreciation method
Multilevel method changes within a fiscal year
Method changeover occurs at the end or within the UL
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #20
21. More Information on Period Intervals
• The number of period intervals depends on the number
of fiscal periods with changes that affect the asset’s
depreciation calculationp
The more transactions posted …
Or the more depreciation parameter changes …
Made across more periods will yield more depreciation
period intervals
The ma im m n mber of depreciation period inter als is• The maximum number of depreciation period intervals is
the same as the number of normal fiscal periods
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #21
22. Example of Period Interval-Based Calculation
121110987654321
Period Interval 1
Date Transaction
Type
Transaction
Amount
Prd
Int
Prd Interval
Duration
Rate Base Value Depreciation
Per Interval
Jan 1 Initial
Acquisition
$12,000 1 12 months 10% $12,000 - $1,200
Acquisition
Total - $1,200
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #22
23. Example of Period Interval-Based Calculation (cont.)
121110987654321
Period Interval 1 Period Interval 2
Date Transaction
Type
Transaction
Amount
Prd
Int
Prd Interval
Duration
Rate Base Value Depreciation
Per Interval
Jan 1 Initial
Acquisition
$12,000 1 9 months 10% $12,000 - $900
Acquisition
Oct 1 Partial
Retirement
- $3,000 2 3 months 10% $9,000 - $225
Total - $1,125
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #23
24. Example of Period Interval-Based Calculation (cont.)
•ERP 6.0
Period Interval = 1 - 12
Percentage
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #24
Period Factor
Base Value
Percentage
Final Annual
Depreciation
25. Example of Period Interval-Based Calculation (cont.)
•ERP 6.0
Final Annual
Base Value
Final Annual
Depreciation
Period Interval 1 = 1 - 9
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #25
Period Interval 2 = 10 - 12
Period Factor
Percentage
26. Comparison of Old vs. New Calculations
• Is there a difference in the final calculated amount
between these two approaches?
NONO
• The annual depreciation amount is identical between
both approaches for most all scenarios.both approaches for most all scenarios.
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #26
28. Configuration Requirements
• No configuration is required as part of the
new calculation
No changes are necessary to the depreciation areas orNo changes are necessary to the depreciation areas or
depreciation keys
• No migration of data is requiredg q
• The final depreciation amounts calculated by SAP
should be the same before and after the upgrade *
Small amount differences might occur in some situations
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #28
29. Process
• SAP recommends that all customers recalculate values
(RAAFAR00) immediately after the technical upgrade
Also consider recalculating prior to the upgrade as part of aAlso consider recalculating prior to the upgrade as part of a
formal system close process
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #29
30. Enhancements
• Existing user exits are no longer processed by the new
depreciation calculation
SAP d li d BAdI i li t ith th• SAP-delivered new BAdI is compliant with the
new calculation
BAdI FAA EE CUSTOMERBAdI FAA_EE_CUSTOMER
Method SET_BASE_VALUE replaces AFAR0001
Method SET_PERCENT_AMOUNT replaces AFAR0002
Method DEFINE CHANGEOVER YR replaces AFAR0003Method DEFINE_CHANGEOVER_YR replaces AFAR0003
• A migration of the business logic must be made to these
new BAdIs if the new calculation is usednew BAdIs if the new calculation is used
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #30
31. Reporting
• Since depreciation is no longer calculated on a line item
basis, all asset transaction reports will show $0.00 as
the depreciation amountp
SAP Note 949701 will hide the depreciation figures so that the
report is not misleading
C id ti t hi t h t i th t b k tConsider creating an asset history sheet version that breaks out
depreciation by type for each period
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #31
32. Asset Explorer
• In addition to the normal Asset Explorer, there is an
alternative version that always uses the old
depreciation calculationp
Allows you to compare the calculations between the old and
new depreciation calculations without deactivating the
Enterprise AddOnEnterprise AddOn
Transaction Description
AW01N Current Depreciation Calculation (New)
AW01 AFAR Old Depreciation CalculationAW01_AFAR Old Depreciation Calculation
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #32
33. Asset Explorer — AW01N “New Depreciation Calc”
ERP 6 0•ERP 6.0
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #33
34. Asset Explorer — AW01_AFAR “Old Deprec Calc”
ERP 6 0•ERP 6.0
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #34
36. Resources
• Relevant SAP Notes
949701 — Fix for asset line item reports
965032 Explanation of small differences post upgrade965032 — Explanation of small differences post upgrade
988238 — Information related to new calculation’s impacts on
year end closing
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #36
37. Resources (cont.)
• SAP ERP 6.0 Documentation on New DCP
http://help.sap.com/saphelp_erp2005vp/helpdata/en/44/07e6a80f
2e5920e10000000a155369/frameset.htm
• SAP ERP 6.0 release notes
http://help.sap.com/erp2005 ehp 02/helpdata/en/43/68805bb88f2http://help.sap.com/erp2005_ehp_02/helpdata/en/43/68805bb88f2
97ee10000000a422035/frameset.htm
• Information for Enterprise AddOn EA-FIN
http://help.sap.com/erp2005_ehp_02/helpdata/en/44/558b1099c9
3672e10000000a114a6b/frameset.htm
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #37
38. Resources (cont.)
• SAP Developer Network (SDN) – Wiki
www.sdn.sap.com/irj/sdn/wiki > ERP Financials > Financial
Accounting > Asset Accounting
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #38
39. Resources (cont.)
• SAP Developer Network (SDN) – Blog Series
www.sdn.sap.com/irj/sdn/wiki > ERP Financials > Financial
Accounting > Asset Accounting
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #39
40. Resources (cont.)
• SAP Financials Expert
“Discover the Logic and Parameter Changes in the New
Depreciation Calculation” (January 2007)p ( y )
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #40
41. Thank you for your attention
Nathan Genez
Managing Partner
Serio Consulting LLCg
227 Sandy Springs Place
Suite D238
Atlanta, GA 30328
T 1-713-240-0421
E nathan.genez@SerioConsulting.com
http://www SerioConsulting comhttp://www.SerioConsulting.com
Eric Barlow
Managing Partner
Serio Consulting LLC
227 S d S i Pl227 Sandy Springs Place
Suite D238
Atlanta, GA 30328
T 1-404-667-0447
E eric.barlow@SerioConsulting.com
http://www.SerioConsulting.com
Source: Nathan Genez & Eric Barlow, New DCP Overview, slide #41
http://www.SerioConsulting.com
