IFRS requirements encompass the following three areas:
- Segmentation of A/R and A/P open documents.
- Handling of new IFRS depreciation base when converting to IFRS. (Only required if your company uses DC1 Asset Management.)
- Reporting of stock balances (only if required).
Setting up data for segmentation
To ensure that you can perform the segmentation and that it is done correctly, the following must be set up in the system.
| Tables/Files | To do | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Function control file | Activate function IFRS. | ||||||||
| G/L control file
(Valid only for Release 5.50 and above) |
Define the segments (primary and secondary). This is flexible – you can change them whenever necessary. | ||||||||
| Work with IFRS segment account parts
(Valid only for Releases 4.50 through 5.10) |
Define the segments (primary and secondary). This is flexible – you can change them whenever necessary. | ||||||||
| Work with pseudo accounts | Enter the main account for any of the following designated pseudo accounts, which is to be used for the booking of the calculated segmented amounts. All other account parts must be left blank.
Note: The main accounts used for these pseudo accounts must be defined with combination code “optional” for all other account parts. A/P segmentation:
A/R segmentation:
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| Work with IFRS segmentation accounts | Enter the account combinations (any individual account or account range – with the exception of control accounts as they are NOT allowed) – thereby defining what accountings are valid for segmentation of the A/R and A/P balances. Valid only for A/R documents or A/P documents or both.
During the actual segmentation, a G/L posting is regarded as valid for segmentation as soon as an entry, which complies with the accounting, is found. See About segmenting and generating reports for instructions. |
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| Voucher type table | Connect routine IFRS to the voucher type(s) used for automatic G/L update and elimination. | ||||||||
| Change of asset useful lifetime | Only required if your company uses DC1 Asset Management. Changing of economical is mandatory for IFRS handling to be able to handle depreciations to avoid inflation/deflation of G/L balances. See About resetting asset useful lifetimes for instructions. |
Setting up data to retrieve and report stock balances
The retrieval of stock balances is not an IFRS function per say. If, however, your company is required to report stock balances according to IFRS, there are two alternatives from which to choose.
| Alternative | Tables/Files | To do |
|---|---|---|
| 1 | (DIS) Work with transaction types | Ensure that the accounting setup in the DIS to FIN interface reflects the stock account balances on a daily basis in G/L balances. This requires that the transaction types for the “stock accounts” (i.e., those applicable of the preloaded transaction types starting with 901) are set up correctly.
Questions that should be considered are: How would I like to present my stock accounts in G/L? What should drive the accounts to my account parts (i.e., a fixed account or table values, e.g. warehouse, item group)? |
| 2 | Periodical stock valuation list printout | If the stock balances on an IFRS detailed level are not required on a daily basis in G/L, you could print a list via the Periodical stock valuation printout routine. This list provides more variables and combinations than alternative 1.
You would then manually enter the accounting in the G/L (via program Enter financial transactions). Note: Correction R5DIS/1982 needs to be installed to make this printout program available. |
| Note: For both alternatives, you would print a list of the accounted stock balances via DC1 Report Writer. | ||
Additional prerequisites
Other prerequisites that may need to be considered are:
Predefined account parts required for primary and secondary segmentation
- This might require new account parts or changed use of account parts, i.e. changed account structure depending on the circumstances in each company, which
- might require start of a new company,
- requires setup changes in account-related tables, e.g. the Account file,
- might require conversion of historic data.
- Other pre-systems need to be able to provide segmented accounting.
- Define accounts in Work with IFRS segmentation accounts valid for A/R and/or A/P documents.
Logistic accounting setup provides required, segmented accounting
- Items, customers, suppliers and orders must have table values that can identify the segments.
- Transaction types must be set up according to segmentation accounting.