Currently there is an increasing number of Roll Out SAP ERP projects associated with parent configurations replication for the representative offices of Russian branches of western companies. Within the framework of implementation there is a need to adapt the business processes customized in accordance with corporate standards to the specific characteristics of the Russian business and legislation, as well as a reverse need of settings and embedding of the features delivered as part of the Russian localization (Russian Add-on) in the corporate standards.

The Roll Out project in Russia has to solve the problem of making it possible to keep the books in accordance with RAS rules in the system without interfering with the basic processes. The project complexity depends not only on the number and types of differences between the corporate and local accounting but also on the flexibility of the customer’s methodologists and their willingness to strike the right balance between the desire to follow the letter of the law and optimize the cost on the automation of these requirements in the system. In the first place, it makes most sense to define all the existing differences, find methodological approaches to their elimination and try to bring accountings closer together as much as possible.

The main problems that may occur when linking Russian and corporate accountings in one system:

  • Differences in the moment of business transactions registration;
  • Differences in the rules of business transactions registration;
  • Corporate and local charts of accounts;
  • Fiscal year shift;
  • Different reporting currency.

The following SAP ERP global tools may be used to realize parallel accounting:

  • Alternative chart of accounts (FI-GL feature);
  • Special ledgers (FI-SL feature);
  • additional FGL ledgers (FI-GL feature, New (Flexible) general ledger);
  • Different fields of fixed assets evaluation (FI-AA feature);
  • Different methods and ways for inventory valuation (incl. ML (Material Ledger));
  • Consolidation feature.

In this article we consider the basic problems arising in the course of Roll-out projects implementation, as well as methodological and technical approaches to their solution that are used in practice. The option of implementation with the use of an alternative chart of accounts is considered.

Chart of accounts

RAS chart of accounts is customized as an alternative to the corporate chart of accounts.  It is necessary to carefully work on the mapping between the generally accepted accounting procedure (GAAP) and RAS alternative accounting procedure to correctly make the necessary settings. During preparation for the mapping it is important to use the account of the basic chart of accounts only in those operations for which the assigned alternate account is used in RAS. In addition, the account should comply with the technical characteristics: control account, exposed items management, tax category etc., required for the relevant alternative account in the Russian Add-on functionality.

Operational chart of accounts is divided into three parts each of which serves:

  • Only GAAP local entries;
  • GAAP and RAS common entries;
  • RAS entries only.

Technical and corporate accounts which are irrelevant for associated reporting are created in the corporate and alternative chart of accounts for joint parallel accounting.

The following peculiarities of keeping alternative accounts should be taken into consideration:

  • An alternative chart of accounts should be customized as the chart of accounts of the country in the global parameters of the business unit.
  • alternative accounts shall have name in RU language.
  • all alternative accounts that were used to set the master data of basic accounts should be kept in the alternative chart of accounts.

Failure to follow these rules leads to incorrect operation of the Russian Add-on standard reporting.

Fiscal year shift in relation to the calendar year

One of the important problems of Roll Out projects is the use of the fiscal year shifted in relation to the calendar year in the corporate accounting of a particular company. The shifted fiscal year not only complicates user experience when forming annual accounts for the RAS purposes but also requires additional adaptation of the Russian Add-On standard functionality.

In the process of Russian Add-On functionality implementation for several projects, program logic errors were identified and corrected in the companies working with the shifted fiscal year. This mainly concerns the solutions in the field of VAT accounting:

  • separate VAT accounting, including for export operations;
  • program for VAT transfer for secondary events.

As a result of the joint work with SAP AG, a few fresh notes were released:

  • 1800993 14.12.2012  (J_3rfum26: Shifted year for separate VAT accounting)
  • 1793287 11.12.2012 (J_3rfum26: Document could not be posted due to splitting)
  • 1809771 13.02.2013 (J_3rfum26: Wrong debit/credit sign posting from ALV)
Author
Tatyana Shangina
SAP Solution Architect
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