A2R-05

Control Description

Fixed asset balance sheet accounts (including asset acquisition and accumulated depreciation) are configured as reconciliation accounts in SAP S/4HANA to prevent direct manual journal entries in the General Ledger.

Risk

Risk of material misstatement in the Fixed Assets financial statement line items (including Asset Acquisition and Accumulated Depreciation) due to unauthorized, erroneous, or direct manual General Ledger journal entries bypassing the sub-ledger, leading to a lack of reconciliation between the Asset Accounting sub-ledger and the General Ledge

Implementation Details

Implementation Details
• Configure Reconciliation Account Field (MITKZ): Ensure that the Reconciliation Account for Account Type field (MITKZ) in the G/L account master record is explicitly configured with the indicator for assets (typically populated with Account Type A for Assets).

Test Procedures

Test of Design (ToD) and Operating Effectiveness

• Inspect the G/L account master configuration data or query tables GL_ACCOUNT to verify that all defined asset acquisition and accumulated depreciation G/L accounts have the Reconciliation Account for Account Type field (MITKZ) set to Assets (A).