ciap in sap

SAP AG Version 2.0

Solution to the CIAP Requirement for Brazil

provided by

SAP AG

This document describes the prerequisites and the general development procedure to cover the Brazilian CIAP requirement in R/3 Release 4.0B.

The standard components Financial Accounting (FI), Asset Accounting (FI-AA), and Controlling (CO) are involved in this solution, whereby a minimum configuration is required for CO. The solution consists of employing standard functions of the three specified components, a report, and a program that have been developed specifically for CIAP.

Table of Contents

1. Introduction 22. Prerequisites 22.1 Customizing and Other Configurations 22.1.1 Controlling (CO) 22.1.2 Asset Accounting (FI-AA) 32.2 Others 53. Procedure 63.1 Creation of Asset Masters 63.2 Acquisition Postings 63.2.1 Acquisitions in Asset Accounting 63.2.2 Acquisitions via Materials Management (MM) 63.2.2.1 Further Prerequisites for the Integration 63.2.2.2 SAP Enhancement 73.2.2.3 Limits of Integration 73.2.3 Acquisitions via Transfer 73.2.4 Acquisitions via Asset under Construction (AuC) 73.2.5 Others 73.3 Monthly Credit Amounts 83.4 Retirements 84 CIAP Overview Report 84.2 Output of the CIAP Overview Report 95 Going Live with CIAP 95.1 CIAP for Assets Already Purchased in the Current Fiscal Year 95.2 CIAP for Assets Purchased in Previous Fiscal Years 105.3 How to Insert the ICMS Amount for an Asset Already Purchased? 106 Coding Example for SAP Enhancement (AINT0004) 117 CIAP before Lei 102 127.1 Introduction 127.2 Procedure 127.2.1 Monthly Reversals 127.2.2 Retirements 137.2.2.1 Selection Screen – Program-Specific Selections 137.2.2.2 Second Selection Screen 138 Combining the former CIAP with Lei 102 14Sample Access Paths for Release 4.0B. 161. Menu Paths 162. IMG Transactions 16

SAP AG Solution to the CIAP Requirement for Brazil Version 2.0

1. Introduction

To manage the asset’s ICMS credits and the calculation of the monthly amounts over the 4-year period, valuation and depreciation functions of FI-AA are used. All ICMS values are stored in a separate depreciation area which has to be created additionally via Customizing. In this area, ordinary depreciation is carried out using a unit-of-production depreciation method that allows calculation of the credit amounts the 4-year interval on a monthly basis. For each individual branch, the system posts these monthly credits periodically to FI and CO.

A newly developed report allows all asset values related to ICMS and CIAP to be displayed, including retirement data and Nota Fiscal document numbers if they were posted via the above-mentioned program.

2. Prerequisites

You can find all paths for the following transactions (specified in bold italics) in the appendix to this document.

2.1 Customizing and Other Configurations

The following explanations presume that basic Customizing for FI is already available in the system (Customizing of the company code).

2.1.1 Controlling (CO)

The following settings are only necessary if you were not using the CO component previously:

- Create/copy a controlling area in CO (IMG transaction Maintain Controlling Area). Activate the components Cost centers (or Order management – see below). Assign your company code to the controlling area.

- Use Maintain Number Ranges for Controlling Documents to create intervals for the controlling document numbers for group COIN.

You need to perform the following steps for CO components that are already active:

- Create CIAP cost elements in CO. These primary cost elements are later entered in the account determination in FI-AA for the CIAP areas (see below).

- Create CIAP cost centers and cost center groups in CO. The cost centers are entered in the asset master and are used a) to assign assets to a specific branch,

2


and b) in the depreciation posting run to post the asset’s monthly reversals of the CIAP area.

- As an option you can create cost center groups to represent the branches. These groups consist of several cost centers. You create the hierarchy of cost center groups/cost centers in the CO master data maintenance (transaction Standard hierarchy).

Note: If conflicts with existing active CO components occur, you can use internal orders instead of cost centers to represent the branches.

2.1.2 Asset Accounting (FI-AA)

a) Chart of depreciation and depreciation areas for CIAP

If a chart of depreciation is already in use, it has to be complemented with the CIAP area (IMG transaction Copy Area).If there is no chart of depreciation in use in your system, you have to create one (IMG transaction Copy reference chart of depreciation / depreciation areas).

Define depreciation areas

Define the depreciation area for CIAP as follows:

- Real dep. area: set this indicator - Posting in G/L: enter 3 (Only depreciation posted in the General Ledger) - Under "Management of values" set the following indicators: Acquisition and

production costs (APC), Positive net book value, and Negative net book value. ICMS credits are treated as APC values.

Note that you must not create parallel areas of the CIAP area!

Please note the following naming convention for the CIAP area:The long text of the CIAP area must start with CIAP, which needs to be written in capital letters (in the language in which you logged on or in Portuguese). This is the prerequisite for identifying the CIAP area in case of purchasing via Materials Management (MM).

Specify transfer of APC values

For the CIAP area, enter area 01 in the ValT (Value transfer from depreciation area) field. Do not set the Iden (Identical transfer of acquisition value) indicator.

Specify transfer of depreciation terms

3


For the CIAP area, do not enter an area in the TTr (Depreciation terms transfer from depreciation area) field. Do not set the Iden (Parameters copied from transfer area) indicator.

Assign chart of depreciation to company code

If you created a new chart of depreciation, assign this chart to the company code being used.

b) Depreciation keys

Define calculation key1

Copy a calculation key and change the settings as follows:

- DepType: N (Ordinary depreciation)- Class: 3 (Other depreciation) - Set the Automatic calculation indicator (all other indicators are not used)- Dep.meth.: S (No. of units/Total no. of units)- Rem. life: do not set this indicator- Base value: 01 (Acquisition value)- %-rate: 0,00- Period control: enter 01 for all controls (Pro rata at period start date)- Levels: not used - Scrap value and Mult.-shift use: not used

Define depreciation keys1

Create one depreciation key for each branch. All keys use the (same) calculation key just created before. Enter this calculation key in the Ordinary deprec. (Internal calculation key for ordinary depreciation) field. Only set the Acq. only allowed in capitalization year indicator.

Define unit-of-production depreciation

Select your company code. For each depreciation key (branch) you maintain the number of units – total units and period units – per depreciation period and year.These numbers represent the monthly factor as follows:

Monthly factor (in decimals) / 48 = period units / total units

Example: In period 2 of year 2000 the monthly factor was calculated to be 7%.The following entry should be added:

– Year: 2000

1 Please note that as of release 4.6B the calculation key has been replaced by corresponding calculation methods (see R/3 standard documentation).1

4


– Period: 2– Total units: 100.000.000– Period units: 145.833 (= 0.07 / 48 x 100.000.000)

Note: The accuracy of this calculation depends on the number of digits for the total units. To avoid rounding differences, choose a large enough value.

Determine depreciation areas in the asset class

Do not forget to activate the new CIAP area in all relevant asset classes. For all asset classes enter a useful life of four years and "CIAP" as the depreciation key (the system proposes these values when you create a new asset master).

c) G/L accounts and posting rules

Assign G/L accounts

Choose the chart of accounts for your company code. For each account allocation, maintain the depreciation accounts in the CIAP area for ordinary depreciation. Enter the account that was defined as cost element in the Expense account for ordinary depreciat. field. In the Acc. dep. accnt. for ordinary depreciation (Accumulated depreciation account for ordinary depreciation) field, enter a contra account to the cost element account for planned depreciation. Be sure to choose accounts that have not been in use before – to separate the CIAP amounts from depreciation amounts in other areas.

Specify intervals and posting rules

For the CIAP area, choose Monthly posting as the posting interval. Set the Assign cost centers indicator so that the depreciation run takes the cost centers into account. Do not set the Smoothing indicator.

2.2 Others

- You need to assign a cost center (or internal order) to all assets for which the CIAP solution should be used; you enter this assignment in the asset master data.

- When you post acquisitions directly to an asset in Asset Accounting, the CIAP amount has to be activated in the CIAP area. You can either do this manually when you post the acquisition or you can use the SAP enhancement Change amount posted for certain areas (AINT0004). For details, refer to the documentation for this enhancement in Transaction SMOD. Use Transaction CMOD to create a customer project using enhancement AINT0004.

5


3. Procedure

3.1 Creation of Asset Masters

Enter the correct branch-specific depreciation key in the asset master (Depreciation areas screen). Assign the asset to a cost center (or to an internal order if preferred – see above).

3.2 Acquisition Postings

3.2.1 Acquisitions in Asset Accounting Check if the CIAP amount in the CIAP area is correct, and then post the full CIAP amount (full ICMS credit amount for the four year period) - to the CIAP area (manually or via user exit). If you do it manually, choose Depreciation areas and enter the CIAP amount there. The Nota Fiscal (NF) number must be entered in the Reference field.

With the first acquisition, the asset’s 4-year CIAP period starts in the period the acquisition was posted. Thus, subsequent acquisitions have to be posted to sub-numbers to distinguish between different CIAP intervals.

3.2.2 Acquisitions via Materials Management (MM)

If an asset is purchased via MM, the ICMS amount is transferred directly from MM to FI-AA into the CIAP area that has been created following this documentation (see section 2.1.2 (Define depreciation areas)). If an asset is purchased via MM, make sure that you post deductible taxes in the purchase order. Note that one material line item has to be posted entirely to one asset.

As a result, two asset line items are created: one for the acquisition to all areas except the CIAP area, and a second one which posts the ICMS amount only to the CIAP area. Both postings use the same transaction type.

This transaction type is defined in Customizing (Default transaction types for FI-AA posting transactions) for transaction code ABZO ("Asset acquis. autom. offset. posting"). This transaction type must not be limited to certain areas.

3.2.2.1 Further Prerequisites for the Integration

The ICMS tax line item must have a base and a tax value greater than zero (for example, no deductible tax is posted in the case of consumption. There is no need for paying it back in the course of the monthly reversal).

6


3.2.2.2 SAP Enhancement

For the acquisition via MM, you need to use the SAP enhancement Change amount posted for certain areas (AINT0004). Make sure you set the amount to be posted to the CIAP area for reference procedure RMRP to zero (see the coding example in section 6). The system creates a new document that only fills the CIAP area with the respective amount.

If you already applied this SAP enhancement for the direct acquisition in Asset Accounting (see section 2.2), make sure that the coding of both applications does not conflict with each other (see section 6).

3.2.2.3 Limits of Integration

If you followed the naming convention for the CIAP area (see section 2.1.2) and implemented the user exit correctly (see section 3.2.2.2), automatic posting is carried out from the logistics invoice verification as follows:Per line that is posted to the asset, an asset document is posted. Subsequent actions (movements) are not done automatically: In the case of cancellation, correction, or other activities, the asset document must be posted manually.As a prerequisite for the automatic posting, at the moment of using the logistics invoice verification, the creation of a NF with the relevant ICMS amount is required (an exception would be e.g. future delivery).

3.2.3 Acquisitions via Transfer

If an asset is received via transfer, the useful life in the CIAP area must be four years so that the CIAP amount is calculated correctly. In addition, the new asset needs to keep the original depreciation start date in the CIAP area.

3.2.4 Acquisitions via Asset under Construction (AuC)

If an asset originates from an AuC, the ICMS amount does not appear automatically in the CIAP area. The ICMS amount can be posted manually to the CIAP area of the targeted assets. To do this, create the CIAP area for the AuC and the targeted assets. When you execute the settlement from the sender (for example, internal order or WBS element) to the AuC, use the capitalization keys to change the settlement amount in the CIAP area to zero. After the final settlement to the targeted assets, the CIAP area will then be empty. In a last step, post the ICMS amount manually to the targeted assets using a transaction type limited to this area.

3.2.5 Others

It is important to always enter the NF number as the reference in all asset postings relevant to CIAP.

7


3.3 Monthly Credit Amounts

- Run the report Modelo 2 (once per branch) to determine the monthly factor (at the period end). Insert the monthly factor into the corresponding depreciation key (see menu path Activity-dependent depreciation key). Note that the monthly factor determined by Modelo 2 is only a proposal; the customer can choose to use it or not.

- Execute the depreciation run to post the CIAP values to FI and CO. Exception: In period 12, you must execute the FI-AA standard report Recalculate Depreciation before the depreciation run is carried out (see menu path Recalculate Values).

- Carry out CO reporting (for example, execute report Display Actual Cost Line Items for Cost Centers) to list the ICMS credit amounts per branch (by cost center or cost center group; you can select the CIAP cost elements).

3.4 Retirements

In the case of complete retirements within the 4-year period, no further credits can be claimed for the retired asset. In case of partial retirements, the future proportional credits will be calculated automatically by the system.

4 CIAP Overview Report

If the tax authority requires an overall list of CIAP payments for the last 10 years, execute the new CIAP report Reporting of Estorno Mensal and Retirements for Assets (RAIDBR_CIAP_REPORT) to display the CIAP values per company code or branch (cost center) and/or per asset number range (or other appropriate selections). Since no legal layout is required, the report displays all values in an ABAP list.

4.1 Selection Screen – Report-Specific Selections

The start date for the reporting period must be entered in the Transaction start date field, and the end of the reporting period must be entered in the Report date field. (Note: The usual restrictions regarding reporting dates for asset accounting reports apply to this report.)

The selections for the transaction types of acquisitions and retirements do not necessarily have to be filled. The system automatically selects transaction types that SAP considers to be relevant to this report. They are selected as follows:

8


In the case of acquisitions: all transaction types belonging to transaction type group 10 (acquisition).

In case of retirements: all transaction types belonging to transaction type groups 20 (retirement), 25 (retirement of current year acquisition), 30 (retirement transfer of prior year acquisition), and 32 (retirement transfer of current year acquisition).

If you specify your own selection, the default setting will be ignored.

You also can insert the state inscription (inscrição) on the selection screen.In addition, you are able to control the page numbering. You can specify both the number of the first page and the total number of pages per book. The New page parameter determines whether the data for each asset is displayed on a new page.

For performance reasons it is recommended to make use of the Dynamic selections functionality: choose the date information such as First acquisition on or Capitalized on and specify a start date such as e.g. 01.08.2000 for the start date of lei 102 in your state. The Dynamic selections functionality reduces the execution time of the report by using appropriate date selections to filter out assets to which CIAP does not apply. The separation between old CIAP law and lei 102 (compare chapter 8) is ensured by running the program twice: once with the old CIAP area and a second time with the new one.

4.2 Output of the CIAP Overview Report

The vendor of the asset is taken from the asset master data.For the sections Entrada the selected acquisitions are listed, and for Saída the corresponding retirements. The Nota Fiscal numbers are taken from the document field Reference.Retirements are only reported in the section Estorno por Saída ou Perda if they have been posted by the program Calculation of Estorno por Saída ou Perda. This program inserts a reference number into the asset accounting document which makes it possible to find the corresponding document in FI. Only when this number is available can the retirement be reported.

5 Going Live with CIAP

After you have implemented the SAP CIAP solution, all assets acquired afterwards are automatically taken into account. For CIAP-relevant assets that were capitalized before the implementation, some additional issues must be considered.

5.1 CIAP for Assets Already Purchased in the Current Fiscal Year

If an asset was acquired in the current fiscal year, the SAP CIAP solution can be applied. But you have to be aware of the fact that the calculation of the monthly ICMS

9


credit amounts can only be correct in the sum for the whole year. The first months of the CIAP year that have already passed can only be summed up to one amount – either in a repeated depreciation run for the month before the current one, or in a normal depreciation run from the current month on. After the first depreciation run of the respective asset, the amounts of the monthly ICMS credits will be correct in each period.

Example:

Acquisition date: February 2001 (first CIAP period)Implementation date of CIAP solution: June 2001 (depreciation run has not been executed yet)Repeated depreciation run, May: CIAP monthly ICMS credits as a sum from

February through MayNormal depreciation runs from June on: CIAP monthly ICMS credits calculated

correctly for each following period

In the case of such a late integration of the asset into the SAP CIAP solution, the Reporting of Estorno Mensal and Retirements for Assets report will not be able to list the individual amounts for the months before the implementation. Monthly ICMS credits will be zero for those months, but the sum of those amounts will be reported in the first period of implementation.

5.2 CIAP for Assets Purchased in Previous Fiscal Years

The application of the CIAP solution provided here is limited. No calculations can be provided for the previous years. For the current fiscal year, the asset can be included in the CIAP solution as described in section 5.1.

If the old asset was purchased before the Law 102 became effective, it can be included in the CIAP solution with the following restriction:In the case of retirement or transfer of such an asset in the current CIAP year, the correction amounts calculated by the Calculation of Estorno por Saída ou Perda program might not be correct and should be corrected manually. The CIAP calculations will be correct in all of the following CIAP periods.

For more details concerning this see section 8.

5.3 How to Insert the ICMS Amount for an Asset Already Purchased?

If an asset was purchased before the implementation of this solution, the original ICMS credit amount has to be posted to the CIAP area manually. You must use a transaction type limited to the CIAP area. The useful life in the CIAP area has to be four years, and the depreciation start date must be the first day of the period of the first acquisition.

10


6 Coding Example for SAP Enhancement (AINT0004)

In Release 4.0B:

The following coding is an example of the program to be inserted intoZXINTU05 in Release 4.0B for the acquisition via MM.

data: my_icms like m_anep-anbtr. " ICMS amount. Zero per default

if i_anbz-bukrs = 'BRAS'. "<<< INSERT NAME OF RELEVANT COMPANY CODE if i_anbz-awtyp = 'RMRP'. * part1: posting from MM: clear value in CIAP area m_anep-afabe = '02'. "<<< INSERT CIAP DEPRECIATION AREA m_anep-anbtr = 0. " value is 0 append m_anep. else. * part2: manual posting * If you do not want to insert the correct ICMS credit manually, * you can insert the coding here. You need to investigate, how the * ICMS credit (which will be posted to the CIAP depreciation area) * can be derived from the accessible data. if i_anbz-bwasl = '100'. "<<< INSERT TRANSACTION TYPE USED m_anep-afabe = '02'. "<<< INSERT CIAP DEPRECIATION AREA * my_icms = ... " ICMS amount calculation m_anep-anbtr = my_icms. " my_icms calculated by you append m_anep. endif. endif. endif.

As of Release 4.5B:Analogously, the corresponding example as of Release 4.5B which has to be inserted into include ZXAPCU05:

data: my_icms like m_anepi-anbtr. " ICMS amount. Zero per default

if i_ants-bukrs = 'BRAS'. "<<< INSERT NAME OF RELEVANT COMPANY CODE if i_rlambu-awtyp = 'RMRP'. * part1: posting from MM: clear value in CIAP area m_anepi-afabe = '02'. "<<< INSERT CIAP DEPRECIATION AREA m_anepi-anbtr = 0. " value is 0 append m_anepi. else. * part2: manual posting * If you do not want to insert the correct ICMS credit manually, * you can insert the coding here. You need to investigate, how the * ICMS credit (which will be posted to the CIAP depreciation area) * can be derived from the accessible data. if i_rlambu-bwasl = '100'. "<<< INSERT TRANSACTION TYPE USED m_anepi-afabe = '02'. "<<< INSERT CIAP DEPRECIATION AREA * my_icms = ... " ICMS amount calculation m_anepi-anbtr = my_icms. " my_icms calculated by you append m_anepi. endif. endif. endif.

11


7 CIAP before Lei 102

7.1 Introduction

To manage the asset’s ICMS credits and their reversal over the 5-year period, valuation and depreciation functions of FI-AA are used. All ICMS values are stored in a separate depreciation area which has to be created additionally via Customizing. In this area, ordinary depreciation is carried out using a unit-of-production depreciation method that allows calculation of the reversals during the 5-year interval on a monthly basis. For each individual branch, the system posts these monthly reversals periodically to FI and CO. The system does not automatically process the payments of the monthly reversals – the user must do this.

In the case of retirements during the 5-year period, a new program calculates and posts the ICMS amount which has to be reversed according to the CIAP law. The calculated ICMS amount to be reversed can be posted automatically if you assign G/L accounts. If you do not want to use this automatic posting functionality, you can also run the new program in the test mode and then post the calculated amount manually. But keep in mind that if you do not use the automatic posting functionality, no reporting will be provided.

Finally, a newly developed report allows all asset values related to ICMS and CIAP to be displayed, including retirement data and Nota Fiscal document numbers if they were posted via the above-mentioned program.

7.2 Procedure

7.2.1 Monthly Reversals

- Run the report Modelo 2 (once per branch) to determine the monthly factor (at the period end). Insert the monthly factor into the corresponding depreciation key (see menu path Activity-dependent depreciation key). Note that the monthly factor determined by Modelo 2 is only a proposal; the customer can choose to use it or not.

- Execute the depreciation run to post the CIAP values to FI and CO. Exception: In period 12, you must execute the FI-AA standard report Recalculate Depreciation before the depreciation run is carried out (see menu path Recalculate Values).

- Carry out CO reporting (for example, execute report Display Actual Cost Line Items for Cost Centers) to list the due amounts per branch (by cost center or cost center group; you can select the CIAP cost elements).

- Manually post the payments in FI per branch.

12


7.2.2 Retirements

In the case of retirements within the 5-year period:

- Post the retirement(s) in FI-AA. Enter the NF number in the Reference field. Note: Choose the same asset value date as the transfer posting date. The retirement must be posted in the same period as the retirement is effective.

- Run the new CIAP program Calculation of Estorno por Saída ou Perda (RAIDBR_CIAP_RETIRE) to calculate the payable ICMS amount. This program can also post the payable ICMS amount in FI for the retirements selected in the output list. When FI postings are made, the program updates the text field of the corresponding FI-AA asset retirement posting with the document number of the FI document. 20 digits are reserved for this entry. 30 digits can be used for other purposes.

- Partial retirements: If there are several partial retirements for one asset in the same period, it is important to run the retirement program Calculation of Estorno por Saída ou Perda in between the retirement postings.

- Be aware that if you reverse a retirement in FI-AA, you also have to reverse the corresponding FI document that has been created by this report.

7.2.2.1 Selection Screen – Program-Specific Selections

Only asset line items of the specified period will be displayed for selection.If the program should also post the CIAP correction, the necessary FI data must be specified on the selection screen.

The Relevant transaction types field does not necessarily have to be filled. The system automatically selects transaction types that SAP considers to be relevant to this report. These are transaction types belonging to transaction type groups:

20 (retirement) 25 (retirement of current year acquisition) 30 (retirement transfer of prior year acquisition), and 32 (retirement transfer of current year acquisition).

If you specify your own selection, the default setting will be ignored.

7.2.2.2 Second Selection Screen

If you are not using the test run, you are able to enter a value in the Correction amount field. Here the user can change the suggested amount (user is responsible for doing this). You can choose the correction amounts to be posted to FI by setting the indicator on the left side.

Posting the CorrectionThe original asset posting document will be enhanced in the header:

13


'#C' as an additional sign, 'Company code', 'Posting document number’ and ‘Current fiscal year’.For example, #CBRAS01000001092000 would belong to company code BRAS, posting document number 0100000109, and fiscal year 2000.This enhancement leads to two important effects:- The same asset posting document cannot be selected for a second posting of

the CIAP correction.- The CIAP overview report will now be able to identify this posting document

and to document the early retirement.

If you do not use the correction program but want to use the overview report, it is very important that you manually make the entry of the enhancement described above. If this is not done, it will be impossible for the report to find the posting documents.

8 Combining the former CIAP with Lei 102

If you were already using the former CIAP solution and have to change over to the procedure following the new requirement of Lei 102 you will have to make the following changes in customizing:

A new depreciation area has to be created to differentiate between already existing assets and the new ones, following the new rules of credit control. You should also deactivate the former CIAP area in the Customizing (Determine depreciation areas in the asset class) so that when creating a new asset master, only the new CIAP area is offered. To make sure that the new assets are only posted to the new CIAP area, follow our naming convention for the CIAP area:

The long text of the CIAP area must start with CIAP, which needs to be written in capital letters (in the language in which you logged on or in Portuguese). This is the prerequisite for identifying the CIAP area in case of purchasing via Materials Management (MM).

In consequence, make sure to change name of the former CIAP area – e.g. to ‘old CIAP’. Make this change of the long text in all languages used by you. This ensures that the retirement report can only be executed for the previous CIAP area.

If you have been using the SAP Enhancement (see section 6), change the entry for the CIAP depreciation are to the newly created area.

As subsequent acquisitions have to be posted to sub-numbers to distinguish between different CIAP intervals, there will also be no problem when acquiring new parts to an asset that follows the old CIAP law. The new acquisition will follow the new requirement.

For the new credit control, new FI accounts and a new cost element different from the cost element already used for the former CIAP solution has to be created in CO. The FI accounts are needed in the account determination of the new CIAP area. See sections 2.1.1. and 2.1.2 c).

14


In addition you will have to create a new depreciation key for the new credit control. You can use the same calculation key as you did for the former CIAP depreciation key.

If you apply this CIAP solution to the old and the new version of the Law in parallel, you should consider the following:

Every asset must have exactly one of the CIAP areas, never both, and these areas are distinguished in the system by the naming convention as described above.

The retirement report cannot be used for the new CIAP area. The overview report Calculation of Estorno por Saída ou Perda

RAIDBR_CIAP_REPORT has to be executed separately for both CIAP areas. The separation between old CIAP law and lei 102 (compare chapter 8) is ensured by running the program twice: once with the old CIAP area and a second time with the new one. The assets will then be listed accordingly. In addition the dynamic selections in the selection screen of the report should be used to reduce the execution time.

It is recommended to create report variants for the assets following the old CIAP law and for the assets following lei 102.

For old assets: choose the appropriate CIAP area and in addition choose a dynamic selection for date information such as First acquisition on or Capitalized on and specify a range such as e.g. 01.03.1998 to 31.12.2000.

For the new assets: choose the appropriate CIAP area and in addition choose a starting date via single value selections, e.g. ≥01.08.2000.

Choosing the dates in the same way as in this example – with an overlap, you can make sure not to lose any asset in your report because the new lei 102 is becoming effective at different dates in different states. Two dates are possible: 01.01.2001 (for example for Sao Paulo) and 01.08.2000.

15


Appendix

Sample Access Paths for Release 4.0B.

Please note that some paths might be different in higher releases (see standard R/3 documentation).

1. Menu Paths

Standard hierarchy (CO)Accounting Controlling Cost centers Master data Standard hierarchy Change

Activity-dependent depreciation keyAccounting Financial accounting Fixed assets Tools Update settings Define activity-dependent depreciation Select your company code and enter an adequate number of units (note that the entry for the Period unit is calculated via Total units x monthly factor / 60).

Recalculate ValuesAccounting Financial accounting Fixed assets Tools Recalculate values

Report "Display Actual Cost Line Items for Cost Centers"Accounting Controlling Cost centers Information system Report selection Cost center accounting Line items Cost Centers: Actual Line Items

2. IMG Transactions

Maintain Controlling AreaControlling Controlling General Organization Maintain Controlling Area

Maintain Number Ranges for Controlling DocumentsControlling Controlling General Organization Maintain Number Ranges for Controlling Documents

Copy AreaFinancial Accounting Asset Accounting Organizational Structures Copy reference chart of depreciation/depreciation areas Copy/delete depreciation areas

Copy reference chart of depreciation / depreciation areas

16


Financial Accounting Asset Accounting Organizational Structures Copy reference chart of depreciation/depreciation areas Copy reference chart of depreciation

Define depreciation areasFinancial Accounting Asset Accounting Valuation Depreciation Areas Define depreciation areas

Specify transfer of APC valuesFinancial Accounting Asset Accounting Valuation Depreciation Areas Specify transfer of APC values

Specify transfer of depreciation termsFinancial Accounting Asset Accounting Valuation Depreciation Areas Specify transfer of depreciation terms

Assign chart of depreciation to company codeFinancial Accounting Asset Accounting Organizational Structures Assign chart of depreciation to company code

Define calculation keyFinancial Accounting Asset Accounting Depreciation Depreciation/Valuation Keys Define calculation key

Define depreciation keysFinancial Accounting Asset Accounting Depreciation Depreciation/Valuation Keys Define depreciation keys

Define unit-of-production depreciationFinancial Accounting Asset Accounting Depreciation Ordinary Depreciation Define unit-of-production depreciation

Determine depreciation areas in the asset classFinancial Accounting Asset Accounting Valuation Determine depreciation areas in the asset class

Assign G/L accountsFinancial Accounting Asset Accounting Integration with the General Ledger Assign G/L accounts

Specify intervals and posting rulesFinancial Accounting Asset Accounting Integration with the General Ledger Post depreciation to the general ledger Specify intervals and posting rules

Change View “Default transaction types for FI-AA posting transactionsFinancial Accounting Asset Accounting Transactions Specify default transaction types

17