In conclusion, a brief excursion into the complexities Roll-Out projects, today we pay attention to several other important aspects.

Forms of accounting reports

The forms of accounting reports are customized on the basis of an alternative chart of accounts so that the users could see the results of RAS accounts when reports are formed. Two factors should be taken into account when accounting reports are formed:

  • The Alternative Account option should be enabled on the selective screen to show alternative accounts in the reports;
  • If a shifted fiscal year is use din the company, the Alternative Period option is used to form the reports for the calendar year.

These options are available in all standard transactions to form the balance reports: F.01, J_3RFBS_ALL, J_3RFFV4.

Note: there is specific logics of filling the selection screen for the J_3RFFV4 report (Form 4) if a shifted fiscal year is used. If it is necessary to receive the data for the calendar year, it is specified as a fiscal year, and the Alternative Period indicator is not marked.

Registration of fixed assets

For replicated western systems, the registration of fixed assets and depreciation performed under 01 of the base depreciation area means registration in accordance with corporate rules. If registration has to be done in accordance with local rules, a separate depreciation area without posting is usually created, as well as an additional depreciation area which reflects the difference arising between the two areas. Postings in respect of this additional area of differences are usually made at the end of the period using the technical accounts for corporate registration. In this case, formation of balance sheet forms under RAS requires using the amounts of relevant accounts in 01 depreciation area and an additional area of differences.

The following problems arise if a shifted fiscal year is used:

  • The completed term in cards is not formed in accordance with RAS rules (in accordance with the calendar year) but in accordance with the shifted fiscal year as the year switches at the moment of calendar year shift;
  • The reports on FA Reserves function within the year. You can only see the balance as of the end of the month inside the year if the year is not closed. If the year is shifted, you may find yourself in a situation when a part of the calendar year relates to the period that ended.

The same situation may occur in case of adjustment of any parameters related to object depreciation calculation if such changes take place in the period when the fiscal year is over and the calendar year is not. In this case adjustment of parameters will only influence the calculation of depreciation in the new fiscal year, and if the data of the change had to provide for depreciation adjustment related to the months of the previous fiscal year, the amounts of adjustments are not calculated automatically and will have to be entered manually.

Cost accounting

According to RAS requirements, it is necessary to calculate the actual cost of the produced and realized products. Tax accounting also requires calculation of the tax cost of the product whose calculation rules may differ from those used in accountancy.

The majority of western projects use ML (Material Ledger) to determine the prime cost of the project. The problem is that the rules of its formation differ from the rules set by our laws practically in all cases.

The following problems may arise depending on the ledger settings. In most cases, products are accounted at a standard price and their revaluation (replacement of this price by an actual one) is made only once a year. The deviations between the standard and actual price are accumulated on separate accounts. Thus, there is no registration of the actual cost by materials. Besides, the rules of deviations formation in accordance with corporate standards may differ from RAS and tax accounting requirements.

Tax accounting is a part of the standard Income Tax design solution included in the Russian Add-on and realized on the basis of FI-SL or a new GL. But even if the SDS is used, the process of cost accounting requires additional adjustment of “adapt” and “distributions” of the amounts of deviations due to differences in their composition for the purposes of corporate and tax accounting.

Several approaches may be used to receive the actual bookkeeping accounting, and all of them are based on the creation of additional technical accounts which are not relevant for corporate accounting but are only used for RAS.

The amount of deviations during the period is accumulated on certain accounts broken down by materials. At the end of the period, these deviations should be calculated and distributed into the relevant flows – products in stock, realization, defective products, etc.

If the rules of actual prime cost calculation with the help of material ledger do not ensure adherence to RAS rules, the following approaches are used depending on the requirements and possibilities of the project:

  • A separate program is developed which analyzes the movement of products, calculates all the expenses of the period, makes calculations and forms postings on technical accounts;
  • Calculation and distribution are made outside the system, and the data on deviations and postings formation in relation to materials movement are downloaded from the system for these purposes at the end of the period. The actual cost of each material is calculated in Excel on the basis of the balance as of the start of the month, movements related to acquisition (purchase or production) and realization. Then uploading is performed through the batch input feature from Excel file into the system of adjustment postings related to writing off the prime cost of realization to technical accounts. The cost of balance should be stored at the warehouse broken down by goods outside the system (in Excel) to be used for calculations in the next month.

The postings on technical accounts are formed without breaking down by materials, and the price of actual balance at the warehouse does not change (remains standard), so the part of deviations related to the balance at the warehouse takes part in the distribution of the next month.

In both cases you have to work out the method, adjust and select reports for downloading and adjust the batch input and downloading.

Differences in the time of operations posting (Accruals)

Difficulties arise in Roll Out projects also in connection with the difference in the period of expenses recognition between corporate accounting and RAS. According to corporate accounting, the expenses are recognized in the period when such expenses arose, and according to RAS – on the date of primary documents receipt. As the majority of western configurations are characterized by strict period closure in the first days of the following month, the registration of such deviations means making additional adjustment postings on technical accounts relevant only for the purposes of accounting under RAS.

This process results not only in additional Accruals and the difference in the amount of expenses during prime cost formation but also complicates VAT accounting as it leads to increase in the volume of operations registered in Additional Lists of the Purchase Ledger. For correct formation of Additional Lists, the documents of the previous periods received in the current period are entered in the current period in accordance with the following rules: the date of posting refers to the current period, and the date of the document is the date specified in the printed form. In this case, the standard features of the Purchase Ledger automatically form the Additional Lists.

The amount of differences may be reduced by strict regulations that determine the procedure of documents acceptance for accounting; for instance, a managerial decision can be made to include only the documents received before days 2-3 of the next month in the expenses of the current period. Such limitations may be accepted in the part of the rules of expenses inclusion in the actual prime cost of the month.

Purchase Ledger improvement is required to adhere to strict requirements related to register all the documents of the current period, received until 20th day of the following month, in the Purchase Ledger.

Logistics

Output logistic forms

Problems arising during the formation of the Invoice, Torg-12 and other output printed forms:

  • Each customer has specific requirements for filling the document fields;
  • There is often a need to form output documents in several currencies and in several languages;
  • Differences in the rules of filling master data fields in the existing configuration from those accepted for data structure formation and included in the features of Russian Add-on;
  • Sometimes the building of the company’s business process requires printing of the output document not during the operation which is normally accompanied by printing.

The logics of the rules of fields filling in printed forms may be adapted to the structure existing n the corporate system with the help of a standard BADI, but a necessity may arise to change the logics of the program which requires a separate development.

Accounting based on CCDs

The standard CCDs accounting solution means writing off the products on the basis of CCDs on FIFO terms within the framework of the Plant but without connection with batches. As a result, a situation may arise when the outgoing batch may receive a CCD different from the one it came with. The standard solution should be improved to solve the problem.

There are three CCD entry options with the help of J3RFGTDUSAGE transaction:

  • With the Order;
  • With the documents for materials;
  • With the invoice.

It should be taken into account that CCD is registered in the Purchase Ledger only if it is entered with the Order.

Period end closing

Period end closing is complicated not only by the fact that no closing entries at month-end are used in the western accounting, for instance: Dt90 Kt20(44), Dt84 Kt90 and so on, but also by the fact that the fiscal year may be shifted against the calendar one. Technical accounts, which are not used in the corporate accounting but create the correct period end closing image for the purposes of Russian Accounting together with the accounts used, are created to form the report forms and closing entries in accordance with RAS.

If there is no shift of the fiscal year, technical accounts are created and the profit and loss accounts that have one P&L account (technical as well) that corresponds to account 84. As a result, at the end of each period the closing entries that do not relate to corporate accounting have to be made manually. At the end of the year, technical accounts close automatically for technical result calculation and all the results are automatically reset to zero as the entries were made only inside this block of accounts.

If the company uses the shifted fiscal year, the balance is carried over to the result account earlier than is necessary for RAS (for example, at the end of September if the shift I made to the last quarter). For the avoidance of this, technical accounts are created by balance sheet accounts that correspond to 90, 44, 91 and 84 to retain the accumulated turnover. The operations in these accounts are included in RAS reports, but in this case rectification entries should be made for these accounts at the end of the calendar year.

Author
Tatyana Shangina
SAP Solution Architect
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