This blog is a continuation of my earlier blog on Intercompany Asset Transfer.
I recommend you go through my previous blog; the link is below for the same.
Introduction
Earlier we have seen different types of Intercompany asset transfer and their Pros and Cons. Now here we will discuss the configuration needed for automatic intercompany asset transfer where depreciation areas have different functions or purposes or the number of depreciation areas are different in both the charts of depreciation.
If the purpose of depreciation areas in two charts of depreciation is different or the depreciation area codes are different, then we have to use a manual process in which we have to retire an asset in sending the company code and acquire an asset in receiving company code with manual updates of a trading partner.
As this is a cumbersome process, where we have to execute two different transaction codes, to make use of the standard process of intercompany transfer (transaction code ABT1N), we have to define Cross-System Depreciation Areas. Cross-system depreciation areas are configured to set depreciation areas from different Charts of Depreciation to a single key (cross-system depreciation area) and then give these areas the same significance across the system.
Use of Cross-system Depreciation Areas:
Cross-system depreciation areas need to be configured when two company codes use different charts of depreciation and if they want to use the standard process of intercompany asset transfer. Below are the possible scenarios.
- If depreciation areas in these two charts of depreciation areas have the same functions, but they have different codes.
- The depreciation areas in these two charts of depreciation have the same code but different functions.
- The other possibility could be the number of depreciation areas in these two charts of depreciation may not be the same.
- If values of any depreciation area that you do not want to transfer. Then do not assign that area to a cross-system depreciation area.
Cross-system depreciation areas are used to manage the transfer of values during intercompany asset transfer in the above scenarios.
Cross-system depreciation areas are defined and unique assignments from one depreciation area to another depreciation area with the same function. We assign depreciation areas from different charts of depreciation, that have the same function, to the same cross-system depreciation area.
There could be 3 different possibilities when we do the asset intercompany transfer using cross-system depreciation areas
- Depreciation area exists on sending asset and on receiving asset
The receiving asset has a depreciation area with the same code as the depreciation area on the sending asset: In this case, the system transfers the values according to the transfer method defined in the transfer variant (gross or net) for this company code relationship type.
- Depreciation area exists only on the receiving asset
There is a depreciation area on receiving asset that is not on the sending asset, The system does not transfer values for this depreciation area if we use the gross transfer method. However, if we use the net transfer method, this depreciation area in the receiving asset can take up values from another depreciation area during the asset transfer transaction, if the depreciation area in the receiving asset has been defined as a dependent area in customizing, meaning that it depends on another depreciation area to adopt values.
- Depreciation area exists only on the sender asset
There is a depreciation area in the sending asset, and that depreciation area is not on the receiving asset, in this case, we can use only net transfer method. The system does carry out the posting but does not transfer values for this depreciation area. Any depreciation areas that are transferred using the gross method must exist in both the sending and the receiving asset, otherwise, the system will not accept the postings and gives an error message.
If you have any of the above scenarios then it is imperative to make use of cross-system depreciation areas, you have to create cross-system depreciation areas explicitly for all depreciation areas that are transferred. Even if we need a cross-system depreciation area for one depreciation area and all other depreciation areas have similar functions with the same codes, we need to assign cross-system depreciation areas to all depreciation areas of all charts of depreciation.
Cross-system depreciation areas have no influence on the creation of the depreciation areas on the receiving asset, cross-system depreciation areas only affect the transfer of values. The creation of depreciation areas on the receiving asset is controlled by the customizing configuration <Determine Depreciation Areas in the Asset Class>.
Configuration Steps for cross-system depreciation areas.
To define the cross-system depreciation area go to SPRO -> Financial Accounting-> Asset Accounting -> Transactions -> Intercompany asset transfer -> Automatic Intercompany Asset Transfers -> Define Cross-System Depreciation Areas.
OR
You can also go to Asset accounting configuration nodes by navigating through ORFA -> Asset Accounting -> Transactions -> Intercompany asset transfer -> Automatic Intercompany Asset Transfers -> Define Cross-System Depreciation Areas.
- Click on Define Cross-System Depreciation Area
- In this section, you will define the cross-system depreciation areas.
- To have a better insight into how it works, please find the below images and steps:
- In the next steps of configuration, we will define which depreciation areas relate to the cross-system depreciation areas.
- In the example above we have illustrated the link between the areas. When executing automatic transfer transaction code ABT1N (for example: moving an asset from Company code 1111 to Company code 2222), depreciation area 1 of Chart of depreciation Z0CA will receive values from depreciation area 1 of Chart of depreciation Z0US. But for depreciation areas 11 and 32 the values, these depreciation areas will receive values of 10 and 30 respectively.
- Return to the system now creates the link for the relevant chart of depreciation. For this go to SPRO -> Financial Accounting-> Asset Accounting -> Transactions -> Intercompany asset transfer -> Automatic Intercompany Asset Transfers -> Define Cross-System Depreciation Areas. In the pop-up window please double-click on Assign Local to Cross-System Depreciation Areas.
OR
You can also go to Asset accounting configuration nodes by navigating through ORFA -> Asset Accounting -> Transactions -> Intercompany asset transfer -> Automatic Intercompany Asset Transfers -> Define Cross-System Depreciation Areas.
- As in example of point 5 here we are making the links between the Chart of depreciation Z0CA and Z0US using the Cross-system Depreciation Areas.
- Here you can observe, depreciation areas 1, 11, 14, 15, 22, 30, and 32 in the Chart of depreciation Z0US will receive values from depreciation areas 1, 10, 12,15, 20, 30, and 31 of the Chart of depreciation Z0CA when executing intercompany asset transfer (ABT1N).
Conclusion:
As I do not have a personal SAP system, hence not able to illustrate this scenario with the example, but this configuration will work.
Hope after reading my blog, you got the information on how intercompany asset transfer works when depreciation areas are different in receiving and sending assets.
Thank you, readers, for sparing time to read my blog. I would like to hear your feedback or thoughts on this blog. Please provide the same in a comment.
