We are a global company and the head office is in Saudi Arabia. We have a company code in Turkey. We have a scenario where the depreication rate is different as per each country's law. For example, the asset class "Vehicle" is depreciated in Turkey say @ 10% and in Saudi Arabia @ 12%. The finanical figures of Turkey company code is consolidated in Saudi Arabian company code. So when the financial figures as per GL account (Depreciation) is taken from Turkey company code, it will be 10%, whereas it needs to be shown in Saudi arabia's books @ 12%. How this is achieved in SAP ? Please note that the chart of account is common for both the company codes.
One way of resolving this issue is to define two different depreciation areas say 01 for turkey and 02 for Saudi arabia. But then how the GL accounts will be posted to ? If the GL balances are moved or rolled up to the group company code i.e. saudi arabian company code, how the depreciation will be treated.
If there is a GL posting in both the depreciation area, then it will be duplicated in the GL posting.
Kindly help me in understanding the solution of SAP for such a scenario.
Thanks in Advance.
this is correct. You have to define "multiple" sets of G/L accounts, one for your Saudi Arabia valuation and one for your turkey evaluation. Then you can define balance sheet versions (respectively P&L) based on these sets of accounts.
With the new General Ledger as aof ECC 5.0 it would be possible to use the same accounts, but assign the depreciation areas to a specific ledger (group).