Changes to Master Data: MUST READ PREREQUISITES:

The organizational units that are relevant to the balance sheet in this context are business area and PROFIT CENTER. The system determines the PROFIT CENTER for the asset indirectly on the basis of the assets cost center. The cost center can also be assigned to a business area. Therefore, the cost center is in this sense also relevant to the balance sheet. You want to change the assignment of the asset to the asset class. Process Flow: Changing Normal Master Recor In!ormation You can change normal asset master record information by simply changing the field contents in the asset master record. Changing Organi"ational Units Not Rele#ant to the $alance Sheet Time-dependent allocations of an asset to organizational units that are not relevant to the balance sheet can also be made directly in the asset master record. You have to enter the time period for the change. You may also have to enter a new time interval. Changing Organi"ational Units Rele#ant to the $alance Sheet There are two ways of changing the assets assignment to organizational units that are relevant to the balance sheet (that is, changing assignment to a business area, or changing the cost center, which in turn affects the PROFIT CENTER . The first method! changing the assignment using the master data transaction "owever, you can only use this method if the Business area and Cost center master data fields are not managed as time-dependent. You can set the business area and cost to time-independent in #ustomizing for Asset Accounting. #hoose Master Data. $hen you change one of these organizational units in the asset master record, the system automatically creates a transfer document with the ac%uisition and the retirement, as well as a master data change document. The system uses the system date as the standard default posting date for the automatically created document. "owever, you can also change this posting date using a substitution (refer to &alidation and 'ubstitution . (t is not possible to change only one particular time interval. #hanges that ta)e effect on a specific date are also not possible. *or both of these reasons, the system is not able to create a history for the assignment to a cost center +PROFIT CENTER. ,fter a change is made, the system displays the new business area or cost center +PROFIT CENTER in all subse%uent reports (even if the report is for a time period prior to the change . The other option is to change the assignment of business area or cost center +PROFIT CENTER by posting an asset transfer to a new master record, rather than ma)ing the change in the asset master data. You have to use this method if the Business area and cost center master data fields are managed as time-dependent. $hen you use this method, the system displays the business area or cost center that is valid for the given time period in all reports. -o matter which of these methods you use, the system ensures continuity in your business area balance sheets and PROFIT CENTER balance sheets. Reorgani"ation o! Fi%e Assets (n a reorganization, you can automatically reorganize fixed assets! You can reorganize fixed assets for which the profit center is assigned directly by means of a cost ob.ect (such as an internal order or a $/' element ! o You can change the profit center in the cost ob.ects and reassign the affected fixed assets. o ,t the same time, the system transfers the balances for fixed assets from the old to the new profit center in new 0eneral 1edger ,ccounting as well as in ,sset ,ccounting.

*urthermore, you can reorganize fixed assets to which a profit center, as opposed to a cost ob.ect, is assigned directly. The following also occur in this case! o 2eassignment (assignment of the new profit center in the master data of the fixed asset and o Transfer of the balances (n general, you can perform the reassignment automatically with the reorganization. "owever, whenever it is notpossible to assign the new profit center automatically, you have to assign it manually in the cost ob.ects (in the case of real estate )eys, internal orders, $/' elements, and cost centers, for example . -ote , prere%uisite for the reorganization of fixed assets is that the profit center and segment have been defined consistently in the fixed asset master records. This consistency is achieved with the #ustomizing settings forSegment Reporting for Fixed Assets. *or more information, see the section 34rere%uisites5. Integration The reorganization of cost ob.ects and fixed assets forms part of the profit center reorganization. $ith the derivation hierarchy, the system considers any relationships to other ob.ects that have imparted their profit center assignment to or inherited their profit center assignment from cost ob.ects or fixed assets. Fi%e Assets in the Deri#ation &ierarch' , fixed asset can be a first-level ob.ect in the derivation hierarchy or an ob.ect on a lower level! O()ect on !irst le#el -o cost ob.ect is assigned to the fixed asset6 instead, a profit center is assigned directly to it. 7xample , fixed asset does not have a profit center from other cost ob.ects assigned to it. (f the fixed asset now needs to be assigned to a new profit center, the fixed asset is included in the reorganization. (f the fixed asset does not inherit its profit center from the cost ob.ect, but rather the profit center is entered explicitly in the asset master record, the fixed asset is a first-level ob.ect in the derivation hierarchy. (n this case, the following steps need to be performed within a reorganization plan! 8. 0eneration of an ob.ect list 9. 2eassignment and transfer of the fixed asset -ote :nli)e in the case of other ob.ect types, the reassignment in the master data and the transfer of balances are performed in one step for fixed assets. O()ect on the secon le#el , cost ob.ect is assigned to the fixed asset and the profit center is derived from that cost ob.ect.

7xample , fixed asset has inherited its profit center from the cost center. (f the fixed asset now needs to be assigned to a new profit center, the fixed asset is reorganized within the same reorganization plan. The profit center can be derived from the following cost ob.ects, which can be assigned to a fixed asset! #ost center $/' element (nternal order

2eal estate ob.ect 2eal estate ob.ects are not part of the standard derivation hierarchy and they are conse%uently not automatically included in the reorganization. S*ecial !eat+res !or cost centers: *or cost centers, there are special prere%uisites so that the system considers them as ob.ects on the first level of the derivation hierarchy and considers fixed assets as ob.ects on the second level. $hen these prere%uisites are fulfilled, the cost center is included in the reorganization plan. (n this case, you do not have to perform any reorganization activities for the cost center (that is, you do not need to generate ob.ect lists or perform reassignments or transfer postings . You only need to perform such reorganization activities for lower-level ob.ects beneath the cost center in the hierarchy. ;nce the system has included the cost center in the reorganization plan, the system issues a confirmation message accordingly for the relevant fixed asset. *or the system to be able to include the cost center in the reorganization plan, you need to create a new time slot with a changed profit center for the cost center. *or this, the following prere%uisites must be met! The )ey date of the cost center change (period begin and the reorganization date are the same. The reorganization plan contains the change from a profit center to another profit center. No postings have yet been made to the cost center in the reorganization period. The #; period must still be closed from the reorganization date for all actual #; transactions. You can chec) this in the program Check Period Lock for CO Transactions. *or more information about reorganizing cost centers, see 2eorganization of #ost #enters. Prere,+isites /efore you can start the reorganization of fixed assets, the following prere%uisites must be met! 8. You use ,sset ,ccounting (*(-,, in your production system. 9. You have activated segment reporting in #ustomizing for Asset Accounting under ntegration !ith "enera# Ledger Accounting Segment Reporting Acti$ate Segment Reporting . You have performed the activities listed here, in particular the following activities! You have activated the account assignment ob.ects Profit Center and Segment. (n the asset master records, you can entered consistent data in the fields Profit Center and Segment. (t must be possible in the asset master record to derive a uni%ue profit center for all posting-relevant cost ob.ects. <. (n #ustomizing for Asset Accounting under ntegration !ith "enera# Ledger Accounting Additiona# Account Assignment O%&ects Acti$ate Account Assignment O%&ects , you have set the Acct Assignment O%&ect Same in Asset Master and Posting indicator. =. You have ensured that the prere%uisites for the reorganization are met and you have made the general #ustomizing settings for the reorganization in "enera# Ledger Accounting '(e!) under Reorgani*ation. *or more information, see 4rere%uisites and #ustomizing 'ettings for the 2eorganization. >. You have run the program Consistenc+ Check for Fixed Assets. This program specifies for selected fixed assets whether they can be reorganized consistently. (t must be possible to derive a uni%ue profit center ? from the cost ob.ects as well as from the fixed asset itself. -ote

;nce a fixed asset has been included in the ob.ect list, you can no longer change the assignment of the account assignment ob.ects outside the reorganization. $e therefore recommend running the consistency chec) on fixed assets before you start the reorganization. (f the program returns a negative result for a fixed asset, that fixed asset cannot be reorganized. (7xample! (n the master record of a fixed asset, a cost center and an internal order are assigned, but you only want to change the cost center . (n other words, no reorganization activities can be performed within the reorganization plan. (f the reorganization plan contains the cost center, you have the following options for resolving this conflict! You remove the internal order from the fixed asset, or You also include the internal order in the reorganization plan. You find the program for chec)ing the consistency of fixed assets in #ustomizing for the Reorgani*ation under Reorgani*ation of Fixed Assets Check Profit Center Assignments in Asset Master Records You have resolved any inconsistencies in the profit center assignment. $e!ore the trans!er *osting: /efore you can start transferring fixed assets, the following prere%uisite must be met! *or the fixed assets to be reorganized, all period-end closing activities need to have been performed completely and closed for the prior period before that prior period can be closed (programs Asset Fisca# ,ear Change (2,@,$7AA and ,ear-.nd C#osing/ Asset Accounting (2,@,/'AA . -imitation a!ter the reorgani"ation: -ote the following limitation! A!ter the reorganization of fixed assets, none of the postings with the old profit center that were made before the reorganization date can be reversed. You need to ensure this from an organizational point of view. Feat+res Buring the reorganization, the system selects all cost ob.ects that are assigned to a profit center to be reorganized. ,s the reorganization manager, you can choose user-definable selection criteria to restrict the number of ob.ects in the reorganization plan. S*ecial !eat+res !or !i%e assets (n the reorganization of fixed assets, the following special features apply! $hen a profit center is assigned to the fixed asset by means of a cost center, the following applies! (f you assign a new profit center by means of a cost center and the above-listed prere%uisites are met, the cost center is automatically included in the reorganization plan. These fixed assets are then second-level ob.ects in the derivation hierarchy. You also need to generate an ob.ect list for second-level fixed assets. 'imultaneously in a single step, the fixed assets are reassigned and the asset balances are transferred. $ith the transfer posting, the system posts the ac%uisition and production costs in aggregated form as well as the cumulated depreciation to the new profit center. This aggregated transfer posting includes the total of all ,4# postings that occurred up to the reorganization date. ,t the time when the transfer posting is made, the reorganization date is usually in the past. The asset balances are then transferred with the current date (system date as the posting date. 7ven when the reorganization date is in the future, the asset balances ac%uire the current date (system date as their posting date. (f the cost center is changed in the asset master record and this results in a reassignment of the profit centers assigned to the fixed asset, the system automatically

transfers the corresponding asset balances. (n such cases, you do not need a reorganization plan. Nee !or a Reorgani"ation Plan !or In irect Assignments .Fi%e Asset /0 Cost Center /0 Pro!it Center1 $hether or not you need to perform a reorganization depends on how a new profit center is assigned to a fixed asset when profit centers are reassigned! The cost center is assigned to a new profit center. 7xample *ixed asset , is assigned to cost center 8. , new profit center needs to be assigned on a )ey date (reorganization date . (n this case, a reorganization plan is necessary. The fixed asset is assigned to a new cost center (with a new profit center .

7xample *ixed asset , is assigned to cost center 8. The assignment needs to be changed in cost center 9. (Bifferent profit centers are assigned to cost centers 8 and 9 . (n this case, a reorganization plan is not necessary. (nstead, you change the cost center directly in the asset master record. The system automatically ma)es the corresponding transfer posting on the current date. Constraints The following constraints apply in the reorganization of fixed assets! The reorganization of group assets is not supported. #onse%uently, you can only reorganize fixed assets consistently when you do not use group assets. (f a cost center is changed in the fixed asset, the transfer posting is made automatically, but without any reorganization. "owever, unli)e in the reorganization, this cannot be scheduled for the future. (nstead, the transfer posting must be made on the current date (system date . ('ee the last example above . Acti#ities *or information about the process flow of the reorganization for fixed assets, see 2eorganization 4rocess for *ixed ,ssets.