Chapter 18 Asset Management Configurations

CHAPTER 18 ASSET MANAGEMENT CONFIGURATION
Table of Contents
1
Introduction ....................................................................................................... 2
2
2.1
2.2
2.3
2.4
2.5
2.6
2.7
Organization Structure ..................................................................................... 2

Define Chart of Depreciation ............................................................................... 2
Assign Input tax indicator for Non- Taxable Acquisitions .................................... 6
Assign Chart of depreciation to Company code .................................................. 7
Define Account determination ............................................................................. 7
Specify Screen layout rules ................................................................................. 8
Define Number range Intervals ......................................................................... 11
Define Asset Classes ........................................................................................ 12
2.8
2.9
Crate GL Accounts required for Asset Accounting ............................................ 19

Define Account Assignment .............................................................................. 20
Depreciation Key ............................................................................................. 29
3.1
3.2
3.3
3.4
3.5
3.6
Define Base Methods ........................................................................................ 29

Define Multi-Level Methods ............................................................................... 30
Define Depreciation Key ................................................................................... 31
Determine depreciation areas in Asset Class ................................................... 33
Define or Assign Form ...................................................................................... 37
Assign Settlement Profile to Company Code for AUC ...................................... 37
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Introduction
The Asset Accounting (FI-AA) component is used for managing and supervising fixed
assets with the SAP R/3 System. In SAP R/3 Financial Accounting, it serves as a subsidiary
ledger to the FI General Ledger, providing detailed information on transactions involving
fixed assets.
As a result of the integration in the R/3 System, Asset Accounting (FI-AA) transfers data
directly to and from other R/3 components. For example, it is possible to post from the
Materials Management (MM) component directly to FI-AA. When an asset is purchased or
produced in-house, you can directly post the invoice receipt or goods receipt, or the
withdrawal from the warehouse, to assets in the Asset Accounting component. At the same
time, you can pass on depreciation and interest directly to the Financial Accounting (FI) and
Controlling (CO) components. From the Plant Maintenance (PM) component, you can settle
maintenance activities that require capitalization to assets.
Organization Structure
The Asset Accounting module is implemented for the following company codes:
1009 ABC Electronics Inc
2.1
Define Chart of Depreciation
The Chart of Depreciation forms the highest organizational entity from the Asset Accounting
point of view. Chart of Depreciation is list of Depreciation areas arranged according to
business and legal requirements. The Chart of Depreciation enables you to manage all rules
for the valuation of assets in a particular country.
Charts of depreciation are used in order to manage various legal requirements for the
depreciation and valuation of assets. These charts of depreciation are usually countryspecific and are defined independently of the other organizational units.
SAP supplies typical reference charts of depreciation for each country. They have different
depreciation areas and depreciation keys depending on that countrys specific requirements.
You
cannot use these charts of depreciation directly. You must create your own chart of
depreciation by copying the reference chart of depreciation. Delete any depreciation areas
that are not needed.
2
Each depreciation area represents a specific type of valuation (for example, book
depreciation or tax depreciation). You can also define your own depreciation. The
depreciation areas are defined with a two-digit numeric key. The numeric keys represent
depreciation terms that you can enter in the asset master record or in the asset classes.
Values and The depreciation rules are defined per chart of depreciation and are detailed as
below.
SAP provide model chart of Depreciation for each country. These contain predefined
depreciation areas. Each depreciation area represents a specific type of valuation e.g. Book
Depreciation, Tax Depreciation etc. Each company code uses one chart of Accounts and
One Chart of Depreciation
Asset transactions are often valued differently for different purposes, for example, different
valuation approaches may be used for:
Financial statements according to local requirements
Balance Sheet for Tax purposes
ABC is Chart of depreciation defined for ABC Electronics Inc, USA
Via Menus
Financial Accounting (New) Asset Accounting Organizational

Structures Copy Reference Chart of Depreciation/Depreciation
Areas
Via Transaction Code
EC08
Double Click on Copy Reference Chart of Depreciation

Click on
Continue, Click on
We can see the below message after completion of copy
Click on
Click on Second option and change Description of Chart of Description, change Description.
Click on
and select
Select third option Copy/Delete Depreciation Areas- Delete all unwanted depreciation
areas.
Click on
Click on
2.2
Ignore messages, if any.
Assign Input tax indicator for Non- Taxable Acquisitions
Via Menus
IMGFinancial Accounting (New) Asset Accounting Integration

with the General Ledger Assign Input Tax Indicator for Non-Taxable
Acquisitions
OBCL
Click on
6
2.3
Assign Chart of depreciation to Company code
Via Menus

Structures Assign Chart of Depreciation to Company Code
OAOB
Click on
2.4
Define Account determination
The account determination links an asset master record to the general ledger accounts that
are posted for an accounting transaction. The account determination key and the description
are entered in this step. When posting is made to an asset, the system determines the G/L
accounts that are posted based on: the asset class to which the asset belongs, the chart of
accounts valid in the company code, the depreciation area, and the account determination
key. The account determination key is entered in the general master data for the asset
class.
Via Menus
IMGFinancial Accounting (New) Asset Accounting Organisational

structure Asset Classes Specify Account Determination
Click on
SPRO
and update below details
Click on
7
2.5
Specify Screen layout rules
When the asset master record is created, the screen layout rules determine if fields are
required entry or optional entry or suppressed completely. In this step, the key and the
description of the screen layout rules are entered in this step. The rules for the screen layout
are defined at a later step and the key is entered later on when asset class is configured.
Via Menus
IMGFinancial Accounting (New) Asset Accounting

Organisational structure Asset Classes Create Screen layout rules
SPRO
Click on
If you want to change status of any field, go to below screen.
Via Menus
IMGFinancial Accounting (New) Asset Accounting Master Data

Screen Layout Define Screen Layout for Asset Master Data
OA77
Click on
Select A300 and click on
Select any of the LFG and click on Field Group rules.
Display field only

If this indicator is set, the screen layout rule defines the corresponding field group as a
display field that cannot be maintained
Entry allowed in asset class
If this indicator is set, the screen layout rule defines the asset class as the maintenance
level for the corresponding field group.
Transfer entry from main asset number to sub-number
If this indicator is set, the screen layout rule defines the asset main number as the
maintenance level for the field group.
This means that when a sub-number is created for the asset, the values for this field group
in the sub-number are supplied by the asset main number.
Entry allowed in asset sub-number
If this indicator is set, the screen layout rule defines the sub-number as the maintenance
level for the corresponding field group
Copy field group from reference asset
If this indicator is set, the screen layout rule specifies that when you create an asset using
another asset as a reference, the specified field group is automatically supplied with values
from the reference asset.
We can make the relevant fields required/Optional/Suppress.

Similarly, we can select any screen lay out and change the field status based on the
requirement.
Note. If we use Asset Accounting before configuring Controlling module, go to Logical Field
group Time Dependent data and select Cost Center field as optional. Example is here.
Click on
10
2.6
Define Number range Intervals
In this step, the number ranges are defined per company code for assigning the main asset
number. The number range number is then assigned to the asset class.
Via Menus
IMGFinancial Accounting (New) Asset Accounting Organizational

Structures Asset Classes Define Number Range Interval
AS08
Give your company code
Click on
Click on
Click on
11
2.7
Define Asset Classes
The asset classes are used to classify / structure the assets. Every asset is assigned to only
one asset class. The account determination, screen layout rule and the number range keys
that have been defined in the above steps are assigned to the asset class in this step. In
this way, when an asset master is created the lowest unassigned number is obtained from
the number range interval. The fields to be entered are copied from the screen layout rules
defined and the account determination derives the GL account where the posting needs to
be made.
Asset class is the main criteria for classifying assets. Each asset is assigned to only one
asset class. You can specify certain control parameters and default values for deprecation
calculation and master data in each asset class.
12
Via Menus
Structures Asset Classes Define Asset Classes

Click on
OAOA
and provide below details
Click on
The sub-assets created under an asset follow an internal number range assignment for all
the asset classes. Hence the option External sub-no is not checked.
Similarly, you can create as many Asset Classes as you require. In this training guide, we
are creating below asset classes
Click on
13
Click on
Click on
14
Click on
Click on
15
Click on
Click on
16
Click on
Click on
17
Click on
18
2.8
Crate GL Accounts required for Asset Accounting
Here, we are creating a fixed asset GL account for each Asset Class
Create Accumulated Depreciation account for each Asset Class. But it is not required for
Land and Asset under Construction Asset Classes as we do not calculate depreciation for
those classes.
Create Depreciation Expense account for each Asset Class. But it is not required for Land
and Asset under Construction Asset Classes as we do not calculate depreciation for those
classes.
19
Create Gain, Loss and Asset Clearing Account which are required for Asset retirement
2.9
Define Account Assignment
The balance sheet accounts and the depreciation accounts are defined in this step. The
account assigned for the account determination defined in the activity 2.4
Via Menus
Financial Accounting (New) Asset Accounting Integration with the

General Ledger Assign G/L Accounts
SPRO
The asset acquisition costs are posted to the account assigned under various categories in
the Acquisition account assignment section. And the gain / loss arising out of the sale of an
asset are defined in the Retirement account assignment section.
Provide Chart of Depreciation
20
Press Enter and Select your Chart of Depreciation
Double click on
Select
Select Land and double click on
21
Click on
Click on
and again
Select
Double click on
and provide the relevant GL Accounts
22
Double Click on
Click on
23
Click on
and again
and Select
Double click on
Double Click on
24
Click on
Click on
and again
and Select
Double click on
Double Click on
25
Click on
Click on
and again
and Select
Double click on
26
Double Click on
Click on
27
Click on
and again
and Select
Double click on
Click on
28

3
Depreciation Key
Specification and parameters required to calculate depreciation are enter in Depreciation

Key.
3.1
Define Base Methods
Via Menus
Financial Accounting (New) Asset Accounting Depreciation

Valuation Methods Depreciation Key Calculation Methods Define
Base Methods
SPRO
We can use 0012 Explicit Percentage. No need to create new base methods.
29
3.2
Define Multi-Level Methods

Via Menus
Valuation Methods Depreciation Key Calculation Methods Define

Multi-Level Methods
SPRO
Click on
Click on
Click on
and maintain the below details
Here, year mean maximum number of years and Base Value 01 is Acquisition Value
Click on
Click on
and again
Click on
30
Click on
Click on
am maintain the below details
Click on
3.3
Define Depreciation Key
The depreciation key controls the calculation of the depreciation for each asset and for each
depreciation area.
Via Menus

Valuation Methods Depreciation Key Maintain Depreciation Key
Click on
AFAMA
31
Click on
Click on
Click on
Click on
Click on
and click on
to activate Depreciation Key
Click on
Click on
32
Click on
Click on
Click on
to activate Depreciation Key
Similarly, we can create as many Depreciation Keys as we need.
3.4
Determine depreciation areas in Asset Class
The depreciation terms that are to be used for the asset class are mentioned in this step.
When an asset master is created for this asset class, the depreciation terms are defaulted
to the master record.
Via Menus
Financial Accounting (New) Asset Accounting Valuation

Determine Depreciation Areas in the Asset Class
OAYZ
Select Asset Class Land
33
Double click on
Deactivate all Depreciation areas which are not required and assign Depreciation Key 0000
as we are not going calculation any deprecation on Land
Click on
and Click on
Select Buildings
34
Double click on
Click on
and Click on
Select Plant & Machinery
Click on
and Click on
Select Furniture & Fixtures
35
Click on
and Click on
Select Vehicles
Click on
and Click on
Select Asset under Construction
Click on
36
3.5
Define or Assign Form
Via Menus
IMGFinancial Accounting (New) Asset Accounting Information

System Define or Assign Form
OAAY
Click on
Assign Form for all your Asset Classes
Click on
3.6
Assign Settlement Profile to Company Code for AUC
Via Menus
IMGFinancial Accounting (New) Asset Accounting Transactions

Capitalization of AUC Define/Assign Settlement Profiles
OKO7
Double click on
Double click on
Here, we are not creating new Settlement Profile; we can use settlement Profile AI.
37
3.7
Assign Settlement Profile to Company Code for AUC
Via Menus
IMGFinancial Accounting (New) Asset Accounting Transactions

Capitalization of AUC Define/Assign Settlement Profiles
OKO7
Double click on
Click on
38

Chapter 18 Asset Management Configurations

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CHAPTER 18 ASSET MANAGEMENT CONFIGURATION

Organization Structure ..................................................................................... 2

Crate GL Accounts required for Asset Accounting ............................................ 19

Depreciation Key ............................................................................................. 29

Define Base Methods ........................................................................................ 29