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Elimination of Fixed Assets Results

Table of Contents

1 Business Background

Section 304 of the German Commercial Code (HGB) is authoritative for the elimination of interim results. The sale of assets within the group may result in gains or losses. However, gains or losses are only to be taken into account in the financial statements if they have actually been realized with outsiders. Gains or losses that are based on intra-group delivery and service relationships must be corrected in their inventory values and in their annual profit or loss in full.

2 Prerequisite for the Automatic Processing of Interim Fixed Assets in the System

The following processing steps must be performed in IDL Konsis in order to eliminate an automatic elimination of the interim result from internal income from fixed assets:

-->Setting up the consolidation parameters 'TA'

-->Setting the switches in the tables 'FAC' and 'ABR' for the management of IC fixed asset transactions

-->Creating special posting keys for repostings to access company

-->Create IC fixed asset objects

-->Maintenance of IC fixed asset transactions

-->Currency conversion and conversion difference calculation of IC fixed asset transaction

-->Triggering of the fixed assets results elimination in the Group monitor

The individual steps are explained in the following chapters.

3 Setting Up the Consolidation Parameters 'TA'

The 'TA' consolidation parameters must be created at the beginning, without which the function cannot be used. If this function is used for the first time, it is necessary to select and display the processing abbreviation 'TA' in the selection area in the field 'consolidation function' from the selection list displayed there. The overview remains empty. The star icon in the menu bar opens the individual overview and the data can be created.

Various accounts can be stored in the consolidation parameters, which are then used for automated processing.

Significance of attributes in the parameter:

[group/sub-group]:
Group/sub-group. Each group/sub-group can set its own parameters. The parameter is presented during the group presentation process (PERKTK).
[Period]:
Indication of the period for which the parameter is to apply.
[Fact]:
Indication of the fact on which the consolidation function is to be carried out.
[Summarize carry forward]:
By marking this field with an 'X', postings are automatically netted on the same account and posting key at carry forward. This allows a considerable reduction in the posting lines of the carry-forward document.
[Deferred taxes]:
By the entry of an 'X' in this field, all affecting net result TA voucher posting lines are automatically marked with an 'X' and are thus taken into account in the calculation of deferred taxes. This then applies to all TA vouchers of the group/sub-group in the period and on the fact.
[Minority interests]:
By entry of an 'X' in this field, all affecting net result postines of TA vouchers are automatically marked with an 'X' and are thus taken into account in the calculation of minority interests. This then applies to all TA vouchers of the group/sub-group in the period and on the fact.
[Company for posting]:
Mandatory entry. By selecting the expression 'A'=posting for offeree company or 'Z'=posting for access company, it is determined with which company the postings should be made. If 'A' is selected, the system posts the AHK disposals and any amortization current year arising from the outgoing company. If 'Z' is selected, the postings of the outgoing company are reposted to the access company. The interim profit always remains with the severance company. The result then shows the asset with the buyer, who uses the asset. This variant takes into account the fact that it makes more sense for the company that has sold an asset to another company not to continue to be burdened with the amortization current year for that asset.
[Interim profit on fixed assets]:
Mandatory entry of an account on which to post an interim profit upon triggering the consolidation function.
[Account Interim loss on fixed assets]:
Optional entry of an account to post an interim loss when the consolidation function is triggered. If no account is entered here, losses are posted to the account in the mandatory field 'account Interim profit for fixed assets'.
[Account Asset Disposals Book value]:
Optional entry of an account allowing the option of "gross booking" in the income statement. This means that it is possible to make a posting the sales proceeds on the one hand and the book value disposal on the other in the P+L. Upon entry of an account in this field, the disposal is automatically posted to this P+L account at book value for all companies in the group. If a gross booking is to be made for individual sales only, this field must remain free and the account entry must be made directly in the respective disposal IC fixed asset object. As a matter of principle: the entries in the IC fixed asset object take precedence over entries in the "TA" consolidation parameters.
[Retained earnings]:
Optional entry of a results carried forward account (BG code=2) to which the affecting net result portion of the consolidation posting of the previous settlement period is to be carried forward. We recommend using a group results carry-forward account that differs from the company financial statement and the HBII closing. If no account is entered here, the carry forward is posting to the carryforward account stored in KTKPAR_KK.
[Clearing account]:
Optional entry of a clearing account (KtoKnz=N). When an account is entered, additional postings on the clearing account are automatically generated in the associated consolidation documents. These postings neutralize shifts in balance sheet/income statement result between the two companies mentioned in the voucher. By considering the neutralization postings in the group report, it is possible to ensure that the breakdown of the company's profit or loss corresponds exactly to the results of the individual financial statements.

4 Setting the Switches in 'FAC' and 'ABR' for the Management of IC Fixed Asset Transactions

To be able to process the data for the elimination of … results in fixed assets (TA) consolidation function in full (e.g. status display in the individual closing monitor, carry forward, currency conversion), a button for the management of IC fixed asset transactions (ICANLBEW) must be activated in the master tables for periods (ABR) and data types (FAC).

Activating the IC Investment Movements (ICANLBEW) in the FAC and ABR tables displays a status column for IC fixed asset transactions in the Closing Single Monitor. A double-click on this column branches into the overview 'IC fixed asset transactions'.

The status indicators are based on entries in the Processing control to the IC fixed asset transactions (Checkpoint=ICANLBEW). These entries are updated for all data changes. However, since there is no comparison between IC fixed asset transactions and account balances, the checkpoint 'ICANLBEW' generally does not contain any error messages. Control values for the data inventory are determined and saved in the processing control record.

The carry forward of IC fixed asset transactions depends on the activation of the management of IC fixed asset transactions for both the lead and current period (ABR) and for the respective fact (FAC).

5 Creation of Special Posting Keys for Repostings to Access Company

If the attribute 'Z' = posting in the consolidation parameters is selected for the access company, posting keys must be created with the usage tag 'XTA' (table 'BSL') for the column-appropriate posting (column 'transfer'). As soon as posting keys for 'AHK' and 'AfA' have been created with usage tag 'XTA', all repostings will be assigned the respective stored posting keys when the consolidation function 'TA' is executed. If no separate posting keys have been created despite the selected expression 'Z', the consolidation postings will not contain the posting keys for the fixed asset transactions.

If you are working with the standard mirrors of IDL Konsis, these mirror extensions are included in the import files in the Delivery batch folder and are already present on regular import of these files.

6 Creation of IC Investment Objects

For the disposal of an asset at the selling company and for the addition of an asset at the purchasing company, one IC fixed asset object must be created in the table 'IC fixed asset object' (ICANLOBJ). The table can be accessed via the brief word entry or via the context menu in the individual closing monitor (in the 'Overviews' area). A new IC fixed asset object is created via the star in the toolbar. The individual record in which the data for the IC fixed asset object is entered will then open.

Meaning of attributes:

[Company]:
Company number of the selling (disposal) or purchasing (addition) company
[Fixed asset object]:
Any 14-digit description of the new IC fixed asset object to be created
[IC system card type]:
This defines which card type the IC fixed asset object should be: A= disposals IC fixed asset object (for the selling company), Z= additions IC fixed asset object (for the purchasing company). One IC fixed asset object must be created for each process (disposal or addition).
[Annexes Object description]:
Description of IC fixed asset object
[Chart of accounts+account]:
Indication of the chart of accounts and asset account to which the IC fixed asset object is to be allocated.
[Acquisition date]:
Indication of the date of acquisition of the fixed asset object. For disposals IC fixed asset object it is the original acquisition date, for addition IC fixed asset object it is the current date of the addition.
[Retirement of GroupDate]:
A date is not to be entered in this field until the fixed asset object has been sold to a third party, i.e. non-consolidated.
[Depreciation type]:
Different types of AfA are available through the selection. For more information, see GUIDE Automatic Generation of Depreciations
[Afa period]:
If the depreciation period in years is stated here, the depreciation period can be stated here. The costs of acquisition are then written off in the same amounts over the stated AfA period. For next details on the various AfA durations offered by the system and their impact, see GUIDE Automatic Generation of Depreciations
[Depreciation/amortization]:
If AfA-Art=GD is selected (geometrically degressive AfA), the percentage for the AfA can be specified here. Otherwise, this field will remain empty.
[Fixed amount]:
If the AfA is not calculated on a straight-line or degressive basis but there is a fixed depreciation amount per year, this must be entered here. If the book value at the exit of the depreciation period is less than the depreciation amount deposited, only this lower amount will be generated. The fixed asset object is only written off automatically up to the book value = 0.00. For more information, see GUIDE Automatic Generation of Depreciations
[Depreciation account for value adjustment]:
Optional entry of a balance sheet account on which the offsetting entry of the AfA is to be made. If this field is left blank, the balance sheet account of the IC fixed asset object is used.

[Depreciation account for amortization current year]: Specification of a depreciation account (Transaction development/P&L statement=D) to which the depreciation statement is to be posted.

[Depreciation controlling object]: Assignment of a controlling object to the AfA account is possible for amortization current year.

[Assigned investment object]: If IC fixed asset objects are already at the company chart of accounts level, an IC fixed asset object at the group chart of accounts level can be assigned to the IC fixed asset object to allow the data (e.g. I2 to I3) to be transferred.

[Addition company]: Entry of the company to which was sold (at (AnlKarTyp=A)). When creating the incoming ICANLOBJ, this field remains empty (AnlKarTyp=Z).

[Disposal company]:
Input of the company from which was purchased (at AnlKarTyp=Z). This field remains blank when setting the outgoing ICANLOBJ (AnlKarType=A).
[Disposal fixed asset object]:
Enter the fixed asset object of the selling company. When creating the disposal ICANLOBJ (AnlKarTyp=A) no data is required, an automatic assignment takes place after the save of the data. When creating the addition ICANLOBJ (AnlKarTyp=Z), the ICANLOBJ of the selling company (AnlKarTyp=A) must be entered here.
[Disposal Income account]:
Enter an expense or income account to which income/expense has been posted at the company level. With AnlKarType=Z this field remains empty. NOTE: If the user wishes to have posted a loss to a separate account, this is achievable, in which a loss account is entered in the respective IC fixed asset object in this field.
[Disposal Income controlling object]:
Enter a controlling object which is assigned to the disposal Income account.
[Disposal book value account]:
Optional entry of an account allowing the option of "gross booking" in the income statement. This means that it is possible to make a posting the sales proceeds on the one hand and the book value disposal on the other in the P+L. Upon entry of an account into this field, the disposal to book value is automatically posted for this IC fixed asset object to the P+L account entered in this field. With AnlKarType=Z this field remains empty.
[Disposal book value controlling object]:
Input of a controlling object, which is assigned to the disposal book value account.
[Fixed asset object valid from]:
Indicates the date from which the IC fixed asset object is valid.

6.1 Example IC Fixed Asset Object Setup

In 2018, the company 400 sold a machine to the company 403 for EUR 75,000. The original AHK amounted to 80,000 euros, the acquisition date was 01.01.2016, The AfA type is straight-line with a depreciation period of in total 8 years, it has already been written off 2 years at the time of progress. The current net book value is therefore EUR 80,000-20,000=EUR 60,000. The income from the disposal of fixed assets therefore corresponds to EUR 15,000.

Disposal IC fixed asset object:

Figure: Selling company IC fixed asset object 400 [disposal]

Addition IC fixed asset object:

Figure: Buying company IC fixed asset object 403 [addition]

7 Maintaining IC Fixed Asset Transactions

In the table 'IC Investment Movements' (ICANLBEW), the IC fixed asset transactions necessary to process the elimination posting are maintained for the IC fixed asset objects.

The transaction is presented as if the IC fixed asset object is still maintained in the company portfolio. This also applies to the disposal IC fixed asset object, i.e. costs of acquisition in TARGET and accumulated depreciation in HAVE. The values within the elimination posting are correctly canceled by labeling the IC fixed asset object as disposal fixed asset object (A) or addition IC fixed asset object (Z).

If t IC fixed asset object and depreciation movements for the current period have yet to be determined, these are already determined and set when the transaction a u t o m a t i s c h is changed. A new calculation of depreciation is automatically calculated for all changes to IC fixed asset transactions (manual entry, import, carry forward).

Figure: Maintenance of the IC fixed asset transaction of the selling and purchasing company with automatically calculated depreciation/amortization (as per t. Information in IC fixed asset object)

8 Currency Conversion and Conversion Difference Calculation of IC Fixed Asset Transaction

In order to identify currency conversion effects from the transactions, the IC fixed asset transactions must be maintained in local currency. It should be ensured that currency conversion is always performed in the company financial statement after editing the IC fixed asset transactions. The IC fixed asset transactions are tested and therefore change the 'WUM' state in the company financial statement. However, the state of the IC investment movement remains unchanged.

Example: Foreign Currency Company IC Investment Movement:

9 Triggering of the 'Elimination of Fixed Assets Results' in the Group Monitor

With the context menu (right click) the calculation and the posting can be triggered after previously selecting the /all companies under the 'elimination of … results fixed assets' menu item. There are 2 variants:

'Fixed assets make a posting elimination of … results'
All existing "TA Relationships" will be checked through the IC Clearing Summary (KGESGES) and consolidation vouchers will ONLY be prepared for the TA Relationships for which NO calculation has yet taken place.
'Repeat fixed assets elimination of … results'
Existing consolidation vouchers and postings (TAs) are deleted and new vouchers and postings are then generated for ALL found "TA relationships".

Once the action is complete, double-click on the 'TA' status field to branch into the IC Clearing Overview (KGESGES). The IC Clearing Overview (KGESGES) shows all the severance relationships of the respective company.


Figure: IC Clearing Overview (KGESGES)

Again, you can use the context menu (right mouse button) to branch directly into the individual closing monitor (EA), to the IC investment movements (ICANLBEW) or to the consolidation posting (CONBOOK).

10 Processing Example with Posting at A = Outgoing Company

In the consolidation parameters 'TA', in the field 'company for posting', a 'A' is entered for posting at the company of departure.

Figure: KTKPAR-TA with pronounced 'A' for posting at severance company

After maintenance of the IC investment movements (as described above) and implementation of the consolidation function 'TA', the following voucher is generated:

Figure: Posting document for elimination of interim profit with posting at the disposal company

Explanatory notes on postings at the disposal company (company 400)
Both the disposal of the fixed asset object as well as the accrued and current amortization current year for the financial year are reposted. The profit that had arisen from the sale of the investment property will be canceled again.
Explanatory notes on postings with the access company (company 403)
The addition of the purchasing company will be reversed, and the AfA will be canceled again for the current financial year of the purchasing company.

In the Group investment report, this elimination of interim profit is as follows:

Figure: Intercompany profit elimination, presentation in the system report

After the accrual company financial statement carried forward (PERGES), the IC fixed asset transactions are carried forward as follows:

Figure: IC fixed asset transactions in the subsequent period

The depreciation and amortization agreement for the subsequent period is set automatically and forms the basis for the 'TA' voucher for the subsequent period. The Group Carry Forward (PERKTK) Converts The 'TA' voucher Of The Previous Period Into A 'TA__V' voucher. All affecting net result items are reposted to the profit carried forward account. In order to eliminate the current AfA, 'TA' processing must be performed again. A new 'TA' voucher is generated in which the current AfA is reversed.

Figure: Consolidation postings in the subsequent period (carry-forward document 'TA__V' voucher and new 'TA' voucher)

11 Processing Example with Posting at Z = Access Company

In the consolidation parameters 'TA' a 'Z' is entered for posting at access company in the field 'company for posting'.

Figure: KTKPAR-TA with 'Z' for posting with access company

To assign the repostings to the correct transaction development column, posting keys with usage tag 'XTA' must be created.

Figure: Posting key with usage tag 'XTA'

The following voucher is generated after maintaining the IC investment movements (as described in the previous example) and carrying out the consolidation function 'TA':

Figure: Consolidation voucher marked 'Z' = make a posting for access company

The voucher shows that all postings relating to the severance company are reposted to the access company (green borders). Only the interim result remains with the departmental company (last line). This achieves that the fixed asset object is reported to the purchaser, who actually uses the asset.

12 IC Fixed Asset Object Leaves the Group (Sale to Third Parties)

If an IC fixed asset object is sold to a third party, the IC items previously booked that led to the elimination of interim profits must be reversed.

For this it is necessary to enter in both addition and disposal IC fixed asset object the date on which the IC fixed asset object exited the group. Up to this date, the current AfA will be calculated on a daily basis. Then the net book value write-off must be maintained in the respective IC investment movements (AHK and AFA), whereby it is important to leave the movement date here on the last day of the period. Any profit that may be generated by carrying out the consolidation process is either posted to the revenue account deposited in the retirement fund object or posted to the account entered in the consolidation parameters 'TA'.

12.1 Example

The company 400 sold a BGA to company 403. The BGA will be sold to a third party outside of the group on 31/10/2019.

Step 1: In the addition and disposal IC fixed asset object, enter the 'disposals group companies Date'. In the valid until field, enter the end of the period up to which the IC fixed asset object should be valid. If no date is entered here, the IC fixed asset transactions will continue to be performed.

Figure: Entry Date of Group Disposal and 'valid until' entry per IC fixed asset object (addition and disposal IC fixed asset object)

 

Step 2: maintenance of IC investment movements. The current order is posted automatically up to the issue date. The outgoing movements for the costs of acquisition and the cumulative amortization current year must be maintained with the appropriate posting keys.

Figure: Maintaining IC fixed asset transactions

Note: Don’t forget the new currency conversion with foreign currency companies!

 

Step 3: Perform consolidation function 'TA'. A TA voucher is generated in which the elimination result of the last years is reversed based on the IC transactions.

Figure: Maintaining IC fixed asset transactions

NOTE: This is not the profit made on the sale of the IC fixed asset object to third parties (this is shown in the company financial statement at the selling company), but only the profit to be eliminated between the selling IC company 400 to the purchasing company 403.
Published:

Elimination of Fixed Assets Results

Table of Contents

1 Business Background

Section 304 of the German Commercial Code (HGB) is authoritative for the elimination of interim results. The sale of assets within the group may result in gains or losses. However, gains or losses are only to be taken into account in the financial statements if they have actually been realized with outsiders. Gains or losses that are based on intra-group delivery and service relationships must be corrected in their inventory values and in their annual profit or loss in full.

2 Prerequisite for the Automatic Processing of Interim Fixed Assets in the System

The following processing steps must be performed in IDL Konsis in order to eliminate an automatic elimination of the interim result from internal income from fixed assets:

-->Setting up the consolidation parameters 'TA'

-->Setting the switches in the tables 'FAC' and 'ABR' for the management of IC fixed asset transactions

-->Creating special posting keys for repostings to access company

-->Create IC fixed asset objects

-->Maintenance of IC fixed asset transactions

-->Currency conversion and conversion difference calculation of IC fixed asset transaction

-->Triggering of the fixed assets results elimination in the Group monitor

The individual steps are explained in the following chapters.

3 Setting Up the Consolidation Parameters 'TA'

The 'TA' consolidation parameters must be created at the beginning, without which the function cannot be used. If this function is used for the first time, it is necessary to select and display the processing abbreviation 'TA' in the selection area in the field 'consolidation function' from the selection list displayed there. The overview remains empty. The star icon in the menu bar opens the individual overview and the data can be created.

Various accounts can be stored in the consolidation parameters, which are then used for automated processing.

Significance of attributes in the parameter:

[group/sub-group]:
Group/sub-group. Each group/sub-group can set its own parameters. The parameter is presented during the group presentation process (PERKTK).
[Period]:
Indication of the period for which the parameter is to apply.
[Fact]:
Indication of the fact on which the consolidation function is to be carried out.
[Summarize carry forward]:
By marking this field with an 'X', postings are automatically netted on the same account and posting key at carry forward. This allows a considerable reduction in the posting lines of the carry-forward document.
[Deferred taxes]:
By the entry of an 'X' in this field, all affecting net result TA voucher posting lines are automatically marked with an 'X' and are thus taken into account in the calculation of deferred taxes. This then applies to all TA vouchers of the group/sub-group in the period and on the fact.
[Minority interests]:
By entry of an 'X' in this field, all affecting net result postines of TA vouchers are automatically marked with an 'X' and are thus taken into account in the calculation of minority interests. This then applies to all TA vouchers of the group/sub-group in the period and on the fact.
[Company for posting]:
Mandatory entry. By selecting the expression 'A'=posting for offeree company or 'Z'=posting for access company, it is determined with which company the postings should be made. If 'A' is selected, the system posts the AHK disposals and any amortization current year arising from the outgoing company. If 'Z' is selected, the postings of the outgoing company are reposted to the access company. The interim profit always remains with the severance company. The result then shows the asset with the buyer, who uses the asset. This variant takes into account the fact that it makes more sense for the company that has sold an asset to another company not to continue to be burdened with the amortization current year for that asset.
[Interim profit on fixed assets]:
Mandatory entry of an account on which to post an interim profit upon triggering the consolidation function.
[Account Interim loss on fixed assets]:
Optional entry of an account to post an interim loss when the consolidation function is triggered. If no account is entered here, losses are posted to the account in the mandatory field 'account Interim profit for fixed assets'.
[Account Asset Disposals Book value]:
Optional entry of an account allowing the option of "gross booking" in the income statement. This means that it is possible to make a posting the sales proceeds on the one hand and the book value disposal on the other in the P+L. Upon entry of an account in this field, the disposal is automatically posted to this P+L account at book value for all companies in the group. If a gross booking is to be made for individual sales only, this field must remain free and the account entry must be made directly in the respective disposal IC fixed asset object. As a matter of principle: the entries in the IC fixed asset object take precedence over entries in the "TA" consolidation parameters.
[Retained earnings]:
Optional entry of a results carried forward account (BG code=2) to which the affecting net result portion of the consolidation posting of the previous settlement period is to be carried forward. We recommend using a group results carry-forward account that differs from the company financial statement and the HBII closing. If no account is entered here, the carry forward is posting to the carryforward account stored in KTKPAR_KK.
[Clearing account]:
Optional entry of a clearing account (KtoKnz=N). When an account is entered, additional postings on the clearing account are automatically generated in the associated consolidation documents. These postings neutralize shifts in balance sheet/income statement result between the two companies mentioned in the voucher. By considering the neutralization postings in the group report, it is possible to ensure that the breakdown of the company's profit or loss corresponds exactly to the results of the individual financial statements.

4 Setting the Switches in 'FAC' and 'ABR' for the Management of IC Fixed Asset Transactions

To be able to process the data for the elimination of … results in fixed assets (TA) consolidation function in full (e.g. status display in the individual closing monitor, carry forward, currency conversion), a button for the management of IC fixed asset transactions (ICANLBEW) must be activated in the master tables for periods (ABR) and data types (FAC).

Activating the IC Investment Movements (ICANLBEW) in the FAC and ABR tables displays a status column for IC fixed asset transactions in the Closing Single Monitor. A double-click on this column branches into the overview 'IC fixed asset transactions'.

The status indicators are based on entries in the Processing control to the IC fixed asset transactions (Checkpoint=ICANLBEW). These entries are updated for all data changes. However, since there is no comparison between IC fixed asset transactions and account balances, the checkpoint 'ICANLBEW' generally does not contain any error messages. Control values for the data inventory are determined and saved in the processing control record.

The carry forward of IC fixed asset transactions depends on the activation of the management of IC fixed asset transactions for both the lead and current period (ABR) and for the respective fact (FAC).

5 Creation of Special Posting Keys for Repostings to Access Company

If the attribute 'Z' = posting in the consolidation parameters is selected for the access company, posting keys must be created with the usage tag 'XTA' (table 'BSL') for the column-appropriate posting (column 'transfer'). As soon as posting keys for 'AHK' and 'AfA' have been created with usage tag 'XTA', all repostings will be assigned the respective stored posting keys when the consolidation function 'TA' is executed. If no separate posting keys have been created despite the selected expression 'Z', the consolidation postings will not contain the posting keys for the fixed asset transactions.

If you are working with the standard mirrors of IDL Konsis, these mirror extensions are included in the import files in the Delivery batch folder and are already present on regular import of these files.

6 Creation of IC Investment Objects

For the disposal of an asset at the selling company and for the addition of an asset at the purchasing company, one IC fixed asset object must be created in the table 'IC fixed asset object' (ICANLOBJ). The table can be accessed via the brief word entry or via the context menu in the individual closing monitor (in the 'Overviews' area). A new IC fixed asset object is created via the star in the toolbar. The individual record in which the data for the IC fixed asset object is entered will then open.

Meaning of attributes:

[Company]:
Company number of the selling (disposal) or purchasing (addition) company
[Fixed asset object]:
Any 14-digit description of the new IC fixed asset object to be created
[IC system card type]:
This defines which card type the IC fixed asset object should be: A= disposals IC fixed asset object (for the selling company), Z= additions IC fixed asset object (for the purchasing company). One IC fixed asset object must be created for each process (disposal or addition).
[Annexes Object description]:
Description of IC fixed asset object
[Chart of accounts+account]:
Indication of the chart of accounts and asset account to which the IC fixed asset object is to be allocated.
[Acquisition date]:
Indication of the date of acquisition of the fixed asset object. For disposals IC fixed asset object it is the original acquisition date, for addition IC fixed asset object it is the current date of the addition.
[Retirement of GroupDate]:
A date is not to be entered in this field until the fixed asset object has been sold to a third party, i.e. non-consolidated.
[Depreciation type]:
Different types of AfA are available through the selection. For more information, see GUIDE Automatic Generation of Depreciations
[Afa period]:
If the depreciation period in years is stated here, the depreciation period can be stated here. The costs of acquisition are then written off in the same amounts over the stated AfA period. For next details on the various AfA durations offered by the system and their impact, see GUIDE Automatic Generation of Depreciations
[Depreciation/amortization]:
If AfA-Art=GD is selected (geometrically degressive AfA), the percentage for the AfA can be specified here. Otherwise, this field will remain empty.
[Fixed amount]:
If the AfA is not calculated on a straight-line or degressive basis but there is a fixed depreciation amount per year, this must be entered here. If the book value at the exit of the depreciation period is less than the depreciation amount deposited, only this lower amount will be generated. The fixed asset object is only written off automatically up to the book value = 0.00. For more information, see GUIDE Automatic Generation of Depreciations
[Depreciation account for value adjustment]:
Optional entry of a balance sheet account on which the offsetting entry of the AfA is to be made. If this field is left blank, the balance sheet account of the IC fixed asset object is used.

[Depreciation account for amortization current year]: Specification of a depreciation account (Transaction development/P&L statement=D) to which the depreciation statement is to be posted.

[Depreciation controlling object]: Assignment of a controlling object to the AfA account is possible for amortization current year.

[Assigned investment object]: If IC fixed asset objects are already at the company chart of accounts level, an IC fixed asset object at the group chart of accounts level can be assigned to the IC fixed asset object to allow the data (e.g. I2 to I3) to be transferred.

[Addition company]: Entry of the company to which was sold (at (AnlKarTyp=A)). When creating the incoming ICANLOBJ, this field remains empty (AnlKarTyp=Z).

[Disposal company]:
Input of the company from which was purchased (at AnlKarTyp=Z). This field remains blank when setting the outgoing ICANLOBJ (AnlKarType=A).
[Disposal fixed asset object]:
Enter the fixed asset object of the selling company. When creating the disposal ICANLOBJ (AnlKarTyp=A) no data is required, an automatic assignment takes place after the save of the data. When creating the addition ICANLOBJ (AnlKarTyp=Z), the ICANLOBJ of the selling company (AnlKarTyp=A) must be entered here.
[Disposal Income account]:
Enter an expense or income account to which income/expense has been posted at the company level. With AnlKarType=Z this field remains empty. NOTE: If the user wishes to have posted a loss to a separate account, this is achievable, in which a loss account is entered in the respective IC fixed asset object in this field.
[Disposal Income controlling object]:
Enter a controlling object which is assigned to the disposal Income account.
[Disposal book value account]:
Optional entry of an account allowing the option of "gross booking" in the income statement. This means that it is possible to make a posting the sales proceeds on the one hand and the book value disposal on the other in the P+L. Upon entry of an account into this field, the disposal to book value is automatically posted for this IC fixed asset object to the P+L account entered in this field. With AnlKarType=Z this field remains empty.
[Disposal book value controlling object]:
Input of a controlling object, which is assigned to the disposal book value account.
[Fixed asset object valid from]:
Indicates the date from which the IC fixed asset object is valid.

6.1 Example IC Fixed Asset Object Setup

In 2018, the company 400 sold a machine to the company 403 for EUR 75,000. The original AHK amounted to 80,000 euros, the acquisition date was 01.01.2016, The AfA type is straight-line with a depreciation period of in total 8 years, it has already been written off 2 years at the time of progress. The current net book value is therefore EUR 80,000-20,000=EUR 60,000. The income from the disposal of fixed assets therefore corresponds to EUR 15,000.

Disposal IC fixed asset object:

Figure: Selling company IC fixed asset object 400 [disposal]

Addition IC fixed asset object:

Figure: Buying company IC fixed asset object 403 [addition]

7 Maintaining IC Fixed Asset Transactions

In the table 'IC Investment Movements' (ICANLBEW), the IC fixed asset transactions necessary to process the elimination posting are maintained for the IC fixed asset objects.

The transaction is presented as if the IC fixed asset object is still maintained in the company portfolio. This also applies to the disposal IC fixed asset object, i.e. costs of acquisition in TARGET and accumulated depreciation in HAVE. The values within the elimination posting are correctly canceled by labeling the IC fixed asset object as disposal fixed asset object (A) or addition IC fixed asset object (Z).

If t IC fixed asset object and depreciation movements for the current period have yet to be determined, these are already determined and set when the transaction a u t o m a t i s c h is changed. A new calculation of depreciation is automatically calculated for all changes to IC fixed asset transactions (manual entry, import, carry forward).

Figure: Maintenance of the IC fixed asset transaction of the selling and purchasing company with automatically calculated depreciation/amortization (as per t. Information in IC fixed asset object)

8 Currency Conversion and Conversion Difference Calculation of IC Fixed Asset Transaction

In order to identify currency conversion effects from the transactions, the IC fixed asset transactions must be maintained in local currency. It should be ensured that currency conversion is always performed in the company financial statement after editing the IC fixed asset transactions. The IC fixed asset transactions are tested and therefore change the 'WUM' state in the company financial statement. However, the state of the IC investment movement remains unchanged.

Example: Foreign Currency Company IC Investment Movement:

9 Triggering of the 'Elimination of Fixed Assets Results' in the Group Monitor

With the context menu (right click) the calculation and the posting can be triggered after previously selecting the /all companies under the 'elimination of … results fixed assets' menu item. There are 2 variants:

'Fixed assets make a posting elimination of … results'
All existing "TA Relationships" will be checked through the IC Clearing Summary (KGESGES) and consolidation vouchers will ONLY be prepared for the TA Relationships for which NO calculation has yet taken place.
'Repeat fixed assets elimination of … results'
Existing consolidation vouchers and postings (TAs) are deleted and new vouchers and postings are then generated for ALL found "TA relationships".

Once the action is complete, double-click on the 'TA' status field to branch into the IC Clearing Overview (KGESGES). The IC Clearing Overview (KGESGES) shows all the severance relationships of the respective company.


Figure: IC Clearing Overview (KGESGES)

Again, you can use the context menu (right mouse button) to branch directly into the individual closing monitor (EA), to the IC investment movements (ICANLBEW) or to the consolidation posting (CONBOOK).

10 Processing Example with Posting at A = Outgoing Company

In the consolidation parameters 'TA', in the field 'company for posting', a 'A' is entered for posting at the company of departure.

Figure: KTKPAR-TA with pronounced 'A' for posting at severance company

After maintenance of the IC investment movements (as described above) and implementation of the consolidation function 'TA', the following voucher is generated:

Figure: Posting document for elimination of interim profit with posting at the disposal company

Explanatory notes on postings at the disposal company (company 400)
Both the disposal of the fixed asset object as well as the accrued and current amortization current year for the financial year are reposted. The profit that had arisen from the sale of the investment property will be canceled again.
Explanatory notes on postings with the access company (company 403)
The addition of the purchasing company will be reversed, and the AfA will be canceled again for the current financial year of the purchasing company.

In the Group investment report, this elimination of interim profit is as follows:

Figure: Intercompany profit elimination, presentation in the system report

After the accrual company financial statement carried forward (PERGES), the IC fixed asset transactions are carried forward as follows:

Figure: IC fixed asset transactions in the subsequent period

The depreciation and amortization agreement for the subsequent period is set automatically and forms the basis for the 'TA' voucher for the subsequent period. The Group Carry Forward (PERKTK) Converts The 'TA' voucher Of The Previous Period Into A 'TA__V' voucher. All affecting net result items are reposted to the profit carried forward account. In order to eliminate the current AfA, 'TA' processing must be performed again. A new 'TA' voucher is generated in which the current AfA is reversed.

Figure: Consolidation postings in the subsequent period (carry-forward document 'TA__V' voucher and new 'TA' voucher)

11 Processing Example with Posting at Z = Access Company

In the consolidation parameters 'TA' a 'Z' is entered for posting at access company in the field 'company for posting'.

Figure: KTKPAR-TA with 'Z' for posting with access company

To assign the repostings to the correct transaction development column, posting keys with usage tag 'XTA' must be created.

Figure: Posting key with usage tag 'XTA'

The following voucher is generated after maintaining the IC investment movements (as described in the previous example) and carrying out the consolidation function 'TA':

Figure: Consolidation voucher marked 'Z' = make a posting for access company

The voucher shows that all postings relating to the severance company are reposted to the access company (green borders). Only the interim result remains with the departmental company (last line). This achieves that the fixed asset object is reported to the purchaser, who actually uses the asset.

12 IC Fixed Asset Object Leaves the Group (Sale to Third Parties)

If an IC fixed asset object is sold to a third party, the IC items previously booked that led to the elimination of interim profits must be reversed.

For this it is necessary to enter in both addition and disposal IC fixed asset object the date on which the IC fixed asset object exited the group. Up to this date, the current AfA will be calculated on a daily basis. Then the net book value write-off must be maintained in the respective IC investment movements (AHK and AFA), whereby it is important to leave the movement date here on the last day of the period. Any profit that may be generated by carrying out the consolidation process is either posted to the revenue account deposited in the retirement fund object or posted to the account entered in the consolidation parameters 'TA'.

12.1 Example

The company 400 sold a BGA to company 403. The BGA will be sold to a third party outside of the group on 31/10/2019.

Step 1: In the addition and disposal IC fixed asset object, enter the 'disposals group companies Date'. In the valid until field, enter the end of the period up to which the IC fixed asset object should be valid. If no date is entered here, the IC fixed asset transactions will continue to be performed.

Figure: Entry Date of Group Disposal and 'valid until' entry per IC fixed asset object (addition and disposal IC fixed asset object)

 

Step 2: maintenance of IC investment movements. The current order is posted automatically up to the issue date. The outgoing movements for the costs of acquisition and the cumulative amortization current year must be maintained with the appropriate posting keys.

Figure: Maintaining IC fixed asset transactions

Note: Don’t forget the new currency conversion with foreign currency companies!

 

Step 3: Perform consolidation function 'TA'. A TA voucher is generated in which the elimination result of the last years is reversed based on the IC transactions.

Figure: Maintaining IC fixed asset transactions

NOTE: This is not the profit made on the sale of the IC fixed asset object to third parties (this is shown in the company financial statement at the selling company), but only the profit to be eliminated between the selling IC company 400 to the purchasing company 403.
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