How to get the  material aging report or slow and fast moving report.?

Problem:

I am really struggling to pull the purchase order number with document number
and vendor code.

Is there any way we can pull report in SAP where we can get the purchase order#
and actual document # with which it got posted in the vendor account.

I want to found out how much direct and indirect expenses we paid from Accounts
payable area…………….

Solution:

1.to populate vendor PO number in FBl1n there is a specific note. You can also get the PO number from FI -MM table.

2.The PO number cant be displayed in FBL1N, but the same will be available in GRIR clearing account. This is standard procedire and the same has been explained in the OSS Note 152335. But you can develop a report with the ABAPer with PO Number for vendors in MSEG table, and for GL account you can get from the table BSEG

3. please refer OSS note 152335.
Exlporing the use of substitution. The substitituion can have a code if T code
is MIRO then derive the PO number from GL line item.
Alternatively we can use BTE 1650

Note: The assumption is MIRO docuemnt –> one PO only.

 Problem:

I am on the step of Define Declining-Balance Methods – tcode AFAMD.

In that a column for defining Declining-balance multiplication factor.

I want to understand the logic for defining multiplication factor, we have to define numeric values here in this column, but i don’t understand on which basis we define values in this column.

Solution:

Let us first understand the concept of depreciation.

You must be aware that depreciation is the process of expensing out a fixed
asset ( viz. reduce the value of the asset in the balance sheet and post it
as an irrecoverable loss / expense in the balance sheet) over the estimated
life of such asset.

There are many such methods to expense out an asset.

The simplest of them would be the straight line method which distributes the
asset value in a *linear* fashion and equi-distributes the depreciation over
the estimated life of the asset.

Asset Value on procurement : 100 units depreciated as

(straight line method if the life of the asset is 4 years: 25+25+25+25 ) 25
% depreciation for 4 years

(straight line method if the life of the asset is 5 years: 20+20+20+20+20 )
20 % depreciation for 5 years

The other method is declining balance method which depreciates more during
the initial years of the asset and depreciates less as time progresses. To
quote an example, don’t you try to save more of your earnings while young
and use such savings during your old age when you have retired from work?
Likewise, a fixed asset is depreciated more during its early useful and
functional life so that you have provided for enough when the asset slowly
starts losing its functionality as time progresses. This method is *non-
linear*.

Declining balance method depreciates more when the asset is most useful and
fully functional ( viz. during earlier years from the date of acquisition ).
This method can be expressed as a multiple of straight line method. The
multiple is called a *factor*. Usually the multiple would be 2 or 2.5 or 3
which means that your depreciation would be 2 to 3 times more under this
method as compared to the straight line method . This is just to accelerate
the initial depreciation so that you have earmarked a sizable portion of
your initial profits for smooth replacement of the asset when your asset
might start losing its sheen in terms of functionality. This is called
accelerating the depreciation.

Though you can devise your own factors such as 6 and 7 ( in place of 2 or 3
), you do not do so for the simple reason that excessive depreciation in the
initial periods with an abnormally high factor of 6 or 7 can affect
consistency of your annual profits in terms of quantum which is not
appreciated by tax authorities and other stake holders.

Let us imagine that you are depreciating an asset of 100 units ( 5 year life
) with 6 factor. This would result in a decrease in the profit by 60 units
in the first year ; the second year’s profit would decrease by 24 units ( 40
* 10/100 * 6).

The wide margin in the annual profit happening in your organization would

a. distort estimation of tax liability,

b. distort dividend declaration to share holders,

c. affect comparative analysis of profit across years within the
organization

d. make comparative analyses across company codes difficult

In order to avoid this, you try not to use a factor of more than 3 or so by
which you accelerate your depreciation and yet keep your annual profits
consistent.

Issue:

Problem:

I have to come up with a solution in order to capitalize assets in 2 different accounting principles. 1- following IFRS requirements and 2 – Local requirement.

Solution:

1. If you determine these costs from the cost center then you can have different (assessment cycle) postings and then accordingly capitalize the same.

2.You can create 3 depreciation areas, 1 for IFRS, 1 for local gaap and a delta area to post the difference between IFRS and local gaap.

3. To add further to second pointl, once you can create separate depreciation areas then it has to tie up with leading and non leading ledger accordingly. This means that depreciation area (IFRS) will tie up with IFRS ledger (can be leading or non leading, depending on your design) and depreciation area (regulatory or local GAAP) can be assigned to Regulatory or local GAAP non leading ledger. You can then post to specific depreciation area by using transaction key functionality and to ledger by using ledger specific posting functionality.