SAP FINANCIALS

Asset Accounting
COURSE OBJECTIVES

Configure Asset Accounting

Use Asset Accounting

Reporting for Assets

Asset Accounting
Asset Accounting
Asset Accounting :Organization structure

Objective:

After completing this unit, you will be able to :

Define a chart of depreciation

Assign a chart of accounts and a chart of depreciation to a company
code
Describe how Asset Accounting is integrated with Cost Accounting
Name asset classes
Assign asset classes to assets
Define which depreciation areas post their values to the general ledger
Asset Accounting :Organization structure

Each company code uses one chart of accounts and one chart of
depreciation. All or several company codes can work with the same chart
of accounts and the same chart of depreciation.
The chart of depreciation is always country-specific.
Asset Accounting :Organization structure

Each depreciation area represents a specific type of valuation

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
Asset Accounting :Organization structure
Depreciation area 01 is the leading depreciation area. Values and
depreciation are posted to the general ledger.

Other depreciation areas may show:

. Country-specific valuation (for example, net-worth tax, state calculation)
. Values or depreciation that differ from area 01 (for cost-accounting reasons ,for
example)
. Consolidated versions in company code or group currency
. Book depreciation in group currency
. Difference between book and country-specific tax-based depreciation

Different depreciation areas can have the same values and depreciation
terms, but can be displayed in different currencies (for example, areas 01
and 32 or areas 30 and 31).
Asset Accounting :Organization structure
Company code is created in Financial Accounting.
Assign the chart of depreciation to the company code.
The necessary data for asset accounting is added to the company code.
The company code is now available for use by Asset Accounting.
Asset Accounting: Integration with Cost Accounting
In the Asset master record, the following original Cost Accounting objects
can be assigned to an asset:
 Cost center
 (Internal) order (real or statistical)
 Activity type
Asset Accounting : Integration with Cost Accounting
Objects from other applications can also be assigned in the asset master
record, for example: WBS elements, Real Estate objects, PSM objects,
maintenance orders.
Depreciation from each depreciation area can be posted in Cost
Accounting. In doing so, the (costing-based) depreciation can be posted
to:
• a cost center
• a (real) order
• a cost center and a statistical order.
• a WBS element
• a cost center and a statistical WBS element
• a Real Estate object
• objects from PSM (Public Sector Management)
Asset Accounting : Asset Classes
Fixed assets are classified into asset classes. Some examples of asset
classes could be vehicles, furniture, or machines.
The asset class consists of a master data section and a depreciation
area section.
Asset classes are created at client level. They are then assigned to at least
one chart of depreciation.
Several charts of depreciation can also be assigned to an asset class. This
ensures that the asset class catalog is uniform, despite using different
depreciation areas.
Asset Accounting : Asset Classes
The Asset class is the main criterion for classifying assets. Each asset is
assigned to only one asset class.
Assets that are to appear in different places/balance sheet items (for
example, buildings and machines) have to be assigned to different asset
classes.
There is also at least one special asset class each for assets under
construction and low value assets.
Asset Accounting : Posting values from Dep. areas

Fixed assets are valued for various business and legal purposes (for
example, book depreciation, tax depreciation, cost-accounting
depreciation, and so on).
The chart of depreciation is a catalog of country-specific depreciation
areas structured according to various business aspects.
The attributes of each individual depreciation area can be specified.
A new chart of depreciation can be created by copying one of the
reference charts of depreciation. In your chart of depreciation, you can
delete the depreciation areas you do not need.
Asset Accounting : Posting values from Dep. areas

We can determine whether and how the values from the depreciation
areas are posted in the general ledger. The options are:
• Do not post any values
• Post asset values online, depreciations periodically
• Post asset values and depreciations periodically
• Only post depreciations periodically
The system dictates that depreciation area 01 posts APC values to the
general ledger online in real time. Normally, depreciation area 01 is used to
manage book depreciation
Asset Accounting : Posting values from Dep. areas

Depreciation areas can also be defined for reporting purposes only, which
do not post any values to the general ledger (for e.g.. a depreciation area
for a tax balance sheet).
Both the Asset B/S values and the depreciation values can be posted from
the individual depreciation areas to separate balance sheet accounts or
income statement accounts in the general ledger.
The financial statement versions to be used for those depreciation areas
for which financial statements are to be created will have to be entered
while customizing for Asset Accounting.
Organization Structure : Exercise Time

? Create a chart of depreciation by copying the standard chart of

depreciation
? Assign your chart of depreciation to a company code.
? Ensure that the asset values in depreciation areas 31 and 32 of our
depreciation plan are displayed in U.S. dollars.
? Check how the depreciation areas of your chart of depreciation post to
the general ledger.
Which depreciation area posts all asset values to the general ledger in real time?
Which depreciation area only posts depreciation?
Which depreciation area is reserved for reporting purposes only?
Asset Accounting : Organization Structure

Summary :
You should now be able to :
Define a chart of depreciation
Assign a chart of accounts and a chart of depreciation to a
company code
Describe how Asset Accounting is integrated with Cost
Accounting
Name asset classes
Assign asset classes to assets
Define which depreciation areas post their values to the
general ledger
Asset Accounting
Asset Accounting :Master data

Objective:

After completing this unit, you will be able to :

Structure assets by creating asset classes

Create and change master data in Asset Accounting
 Process mass changes using a work list
Asset Accounting : Asset Classes
Asset classes are important to structure fixed assets according to the
requirements of the enterprise. It consists of two main sections:
 A master data section with control data and default values for the
administrative data in the asset master record
A valuation section with control parameters and default values for
valuation and depreciation terms

The Asset class definitions apply to all company codes in a client.

 Asset Accounting : Asset Classes

When an asset master record is created ,the data is automatically adopted

from the asset class specified.
Reduces the time and effort needed to create new asset master record.
Ensures that the records in a given class are handled uniformly.
Establishes a link between the asset master records and the accounts to
which the related values and depreciation are posted in the general ledger
Asset Classes: Account determination

For several similar asset classes ,different account determination keys can
be used, although their values are all updated to a single balance sheet
account.

Several asset classes can use the same account determination key if they
use the same chart of accounts and post to the same G/L accounts.

If different charts of accounts are used, only one account determination
key is needed to post asset values of all asset classes to different accounts
in the different charts of accounts.

To define acquisition/retirement accounts, the necessary G/L accounts for

acquisition, retirement, balance sheet revaluation, and cost amounts that
are not capitalized (cost element and account for non operating expense or
capitalization differences) will have to be entered.
Asset Classes: Account determination
 Asset Classes: Number ranges
The number range controls the assignment of the number of the asset master
record. It can be defined as either internal or external.
Internal :The system automatically assigns the next available number in the
numerical sequence in the defined number range interval.
External :The number is assigned by the user or by another system.

Each company code can have its own number range, or company codes
can share number ranges.
Asset Classes: Screen layout
The screen layout specifies which input fields are displayed in the asset
master record, and whether they are required entry or optional
fields/suppress/display only
The screen layout specifies the maintenance level of master data fields
i.e. level at which each field can be maintained –Asset Class/Asset
no./Sub number
It also has the reference indicator controls which field contents of an
asset area can be copied when that asset is used as a reference for
creating a new asset master record.
Asset Classes: Screen layout for depreciation
The screen layout rule defined here applies to the valuation fields in
the depreciation area.
SAP supplies screen layout rules 1000 and 2000 in the standard
system.
These screen layout rules also contain a maintenance level. The
maintenance level guarantees that depreciation is controlled uniformly.
Depreciation can be configured to be uniform at same at asset class
level or Main Asset number or the Sub Asset.
Asset Classes: Account assignment objects
Account assignment objects must be activated before they can be
maintained in the master data.

Path :
Integration with the General Ledger → Additional Account Assignment Objects →
Activate Account Assignment Objects.

Depreciation (cost-accounting) can be posted to account assignment

objects, or can be used for APC (acquisition and production costs)
postings, such as direct capitalization as part of an investment measure
or for (statistical) budget monitoring for asset purchase. It can be posted
to the following objects:
. Cost center
. CO internal order
. WBS element
. Real estate object (building or property)
. Various objects from the PSM (Public Sector Management) component
Asset Classes: Asset Under Construction
Assets under construction (AuC) require a separate asset class and
corresponding G/L account, because they have to be shown separately
in the balance sheet.
Normally depreciation key 0000 is used to ensure that depreciation is
not calculated for AuC in depreciation areas for the balance sheet.
However, special tax depreciation and investment support are possible
even on AuC.
It is also possible to post down payments on assets under
construction.
Even after an asset under construction has been fully capitalized, you
can still post credit memos to it. However, you have to allow negative
APC.
To manage more extensive asset investments, Investment
Management (IM) integrates internal orders and projects with the AuC
and allows detailed monitoring.
Asset Classes: Low Value Assets
Low value assets (LVAs) can be managed using individual
management or collective management .For each type of
management, a separate asset class has to be set up .
In case of collective management of LVAs, a base unit of quantity in
the asset class is to be entered.
A check of the maximum amount in the depreciation areas of the
asset class for LVAs should also be set.
Asset Classes : Exercise Time

? Create number range assignment for assets in the company code(can be

cross company code also)
? Create an account assignment
? Create screen layout rules for master data and depreciation areas
? Create an Asset class by copying other class and assign the created
number range, account assignment and screen layout rules to it .
Asset Accounting: Asset Master record
Assets can be created in two ways:
1. Enter the company code and the asset class to which the new
master record is to belong .The asset class provides the control
parameters for the master record.
2. Use an existing asset master record as a reference

Add any additional information and remove any unwanted copied data
 Asset Accounting: Asset Master record

Certain information in the asset master record can be managed as time-

dependent data. This is of particular significance for cost accounting
assignments (for example, cost center, order, project) since depreciation is
run on a monthly basis.
Whenever an asset master record is changed, the system creates a
change document. The change document contains a list of fields that
were changed and the number of changes to a field. In addition, the name
of the user and the old and new contents of fields are stored.
For assigning equipment and functional locations to an asset ,the asset
number can be entered in the relevant master record.
By synchronously creating and changing equipment and asset, enhanced
integration between the Asset Accounting (FI-AA) and Plant Maintenance
(PM) components can be achieved.
 Asset Accounting: Asset sub number

If a fixed asset is made up of many component assets, these component

assets can be managed as separate sub numbers.
External or internal number assignment can be specified for the
asset sub number.
You can work directly with a specific sub number, all sub numbers
belonging to an asset, or a selection from a list of sub numbers. You can
also report separately on accumulated depreciation and book values for
previous fiscal years for individual asset sub numbers.
By specifying maintenance level at the sub number level, the default
value for depreciation terms can be changed on the sub number.
Asset Accounting: Mass changes

For changing the cost centers of assets en masse with system support.
 Asset Accounting: Mass changes

Steps:
1. Create a substitution rule to specify which fields you want to change and
how you want to change them.
2. Generate a list of assets to be changed (for example, by running a
standard report with the appropriate selections).
3. Choose the Create work list function.
4. Enter a description and select a purpose for your work list. The purpose is
a predefined standard task in the system (for example, change master
data).
5. Choose the appropriate substitution rule for the mass change.
6. If you do not want to use the workflow, make sure that the work list
created is not assigned to any user.
7. Check whether your mass change was successful by displaying the assets
or running an appropriate report.
Asset master record :Exercise Time

? Use asset class - vehicles and your company code to create a master
record named Forklift group ##.. Assign a cost center e.g.(Motorcycle
Production) to the master record.
? Create the second master record using your first one as a reference
? Change the description of the Asset master record.
? Change the cost center Assignment for the first master record.
Asset Accounting :Master data

Summary :

You should now be able to :

Structure assets by creating asset classes
 Create and change master data in Asset Accounting
 Process mass changes using a work list
Asset Accounting
Asset Accounting : Asset transactions

Objective:
After completing this unit, you will be able to :

Post integrated and non-integrated asset acquisitions in the system

Post integrated and non-integrated asset retirements in the system
Represent intra company and intercompany asset transfers in the
system
Represent assets under construction in the system
Represent unplanned depreciation in the system
Asset transactions :Acquisitions
Different ways of Acquisition of an asset from a business partner -- external
acquisition:
In Asset Accounting (FI-AA) integrated with Accounts Payable
(incoming invoice), but without reference to a purchase order
In FI-AA with automatic offsetting entry, but without a link to a purchase
order and without integration with Accounts Payable: This posting is
normally used when the invoice has not yet been received, or when the
invoice was posted by the AP department beforehand in a separate step. The
offsetting account also has to be cleared.
In FI-AA with automatic clearing of the offsetting entry: The first posting
usually is made in FI-AP. The clearing account is cleared at the same time as
the asset posting is made.
In Materials Management (MM): The asset is posted in MM. “Acquisition
from in-house production” is the capitalization of goods or services that are
partially or completely produced in your own enterprise. Production costs are
capitalized by creating an investment measure (order/project) in Investment
Management (IM) and settling to an AuC and then to final asset.
Asset transactions :Acquisitions

The following information is automatically set in the asset master record at

the time of the first acquisition posting:
1. Date of asset capitalization (derived from the asset value date)
2. Date of initial acquisition in the relevant master record (derived from the asset
value date)
3. Acquisition year and acquisition period (derived from the posting date)

 Default values can be entered for the asset value date for each type of
accounting transaction
The asset value date ( → capitalization date) determines the
depreciation start date of the asset. This date is determined for each
depreciation area by the period control method of the depreciation key.
The system determines the planned annual depreciation and planned
interest based on the depreciation start date and the depreciation terms.
Asset transactions :Acquisitions
The document type is a two character, alphanumeric entry that
determines how documents are stored. Separate number range for
documents can be defined for each company code.
If you do not want the numbers defined as year-dependent, then enter a
future year under Year (such as 9999).
Exactly one number range is assigned to each document type.
Account types that are allowed when making entries with a particular
document type are specified herein.
Asset transactions :Acquisitions

The document type determines

how the posting is processed:
• With document type “AA” you
post gross, that is, without
deducting a discount.
• With document type “AN” (KN,
RN), the amount capitalized to
the asset is reduced by the
discount (net document type).
Asset transactions :Acquisitions
Business Transaction types are used with every posting. They identify
acquisitions, retirements and transfers.
The asset history sheet reports and other FI-AA reports use the
transaction type to identify the different kinds of transactions and display
them separately (for example, the transaction type specifies where the
value change is shown in the asset history sheet: as a retirement of a
prior-year acquisition, or of a current-year acquisition).
The transaction type specifies which of the following are updated:
1. Asset balance sheet accounts
2. Depreciation areas
3. Value fields
Transaction types can be limited to specific depreciation areas (for
example, transaction type 030 for acquisition in the group depreciation
area.)
You can also define your own transaction types. They can be used to
separate various types of accounting or transactions in reports.
Asset transactions :Acquisitions
Every transaction type belongs to a transaction type group. The
transaction type group defines the characteristics of the transaction type.
In the transaction type display, choose Goto from the menu bar to display
the transaction type group.
The transaction type groups are fixed and cannot be changed.
Specific transaction type groups can be limited to certain asset classes
(for example, down payments allowed only in the asset class for assets
under construction). All transaction types assigned to this transaction type
group can only be used for assets belonging to the appropriate class.
Asset transactions :Non integrated acquisitions
Reasons for not making integrated postings:
The invoice arrived before the asset
The asset has already been delivered but the invoice has not arrived

If asset acquisition postings are not integrated , a clearing account is

used. This should be a general ledger account with open item
management to guarantee that you can clear the account.
One posting is made to the clearing account from Accounts Payable
(clearing account debit , credit vendor), and one from Asset Accounting
(debit to asset, credit to clearing account). The sequence is determined
by the transaction.
The clearing account is cleared in the general ledger in a separate step,.
This is done either manually or by running the automatic clearing
program SAPF124.
Alternatively , you can create a new master record within the framework
of non-integrated acquisition (automatic offsetting entry).
Asset transactions :Non integrated acquisitions
Asset transactions :Acquisition with MM integration
THE STEPS ARE :
1. Creation of a purchase requisition
2. Creation of an asset master record, and creation of the purchase
order.
In the purchase order transaction ( →ME21N), if account assignment type A
(A = asset) is used ,you can enter an asset master record number in the
“Item Detail” screen area. An even greater degree of integration can be
achieved if the asset master record is created in the purchase order
transaction.
Asset transactions :Acquisition with MM integration

3. Goods receipt - When you enter the purchase order, you determine
whether the asset is posted directly to Asset Accounting, and thereby
capitalized, when the goods receipt is posted (valuated good receipt), or
whether capitalization does not take place until the invoice receipt is posted
(non-valuated goods receipt).

However, in either case ,the system uses the date of the goods receipt as
the capitalization date.

4. Invoice receipt - If the goods receipt was non-valuated, the asset is

capitalized, line items are created, and the value fields are updated.
Asset acquisition :Exercise Time

? Post an acquisition for a forklift through a vendor on January7, CY).

Choose a document type with automatic deduction of discount.
? Post another acquisition, with automatic offsetting for Machine 01,
acquisition and production costs (APC) of 100,000.
? Post an acquisition in the current year to a (new) asset in class vehicles
without first having created an asset master record.
? Check the following using Asset Explorer
• Asset values
• Balance sheet asset account that the system posted to
• Start date for depreciation
• Planned depreciation values in depreciation areas 01 (book depreciation) and 20
(cost-accounting depreciation)
• Asset history sheet
Asset transactions :Asset Retirement

There are different ways of posting retirements:

1. With or without revenue (scrapping)

2. With or without customer (non-integrated)

3. As full or partial retirement

4. As mass retirement (with worklist)

5. As retirement of several assets (within the manually posted

retirement transaction)
Asset transactions :Asset Retirement

The reference period for the asset retirement is determined based on the
asset value date (asset retirement date) and the period control method
(period control key) of the depreciation key.

The system automatically determines the depreciation up to this period that

apply to the part of the asset being retired, and cancels this depreciation. At
the same time, the system posts the asset retirement.

The gain or loss results as the balance of the following: the amount of the
asset retirement; the amount of depreciation ; and the revenue (that is, the
sale price) that is received for the asset.
Asset transactions :Mass Retirement

Mass retirement, with or without revenue, is defined as a standard

task in the system.
Asset transactions :Mass Retirement

To carry out a mass retirement, these steps are to be followed:

1. Use an asset report to create a list of the assets to be retired.

2. Create a worklist.

3. Select a purpose for the worklist:

. Retirement without revenue
. Retirement sale (with revenue)

4. Enter the revenue distribution.

5. Process the worklist, or edit the worklist before releasing it.

Asset Retirement :Exercise Time

? Machine X (or any other asset ) is to be sold completely on July 01 of

the current year. Post an integrated complete retirement for machine X
(value date: July 1, CY) assuming net (sales) revenue of 10,000.
? Part (60 %) of another asset (machine Y) is to be sold. Post the
(integrated) retirement in the current year, and enter revenue/sales
price of Rs 5,000.
? Machine Z is to be scrapped .Post the asset retirement without revenue
in the current year.
? In all the above cases, check the posting documents, the changes in
the asset master record, and the changes in the Asset Explorer.
Asset transactions : Asset Transfer
Asset Accounting distinguishes between different types of transfers,
depending on circumstances:
. Transfers within a company code (intracompany transfer)
. Transfers between different company codes (intercompany transfer)

Possible reasons for intra company code transfers:

•A master record has been created and posted to in the wrong class.
•The asset has changed location. As a result, you have to change
organizational allocations (such as asset class, business area) in the master
record that cannot otherwise be changed.
•The asset needs to be split. Therefore, a portion of the original asset will be
transferred to a new asset.
•Stock material (goods created by your enterprise or bought in) needs to be
transferred to an asset.

The standard system uses transfer variant 4 for intracompany

transfers. The transaction types for transfer postings to source and target
assets are determined using the transfer variant.
Asset transactions : Asset Transfer
Possible reasons for inter company code transfers:

• The physical location of the asset has changed (due to a sale)

• The organizational structures of the affected company codes have changed,
and you have to assign the asset to a new company code

In an inter company code transfer, there might be 2 scenarios:

1. Transfer within a legal, independent unit (within a company).In the
case where both company codes belong to the same company, SAP
refers to a transfer of relationship type 02. In this case, the two
company codes are to be regarded as part of the same legal unit.

2. Transfer between legally independent organizational units (company

codes), each belonging to a different company. In this case, the
company codes are not linked with each other by means of the
company, but still belong to a group of affiliated companies
(corporate groups).This scenario is also defined using a relationship
type, and is a transfer of relationship type 01.
Asset transactions : Asset Transfer

The transfer method controls how values are transferred from the source
company code to the target company code.

Gross transfer method - This method transfers the historical values of

the asset to the target company code.

Net method - The net book value is capitalized on the target asset.

New value method - The system capitalizes the amount of the

sales revenue on the target asset.
Asset transactions : Asset Transfer

If the company codes are assigned to different charts of depreciation, the

charts of depreciation can contain different depreciation areas (different
keys) with the same actual functions. When this is the case, you can define
cross-company depreciation areas.

Cross-company depreciation areas do not have their own control parameters.

Instead they consist solely of a key that is uniform throughout the client,
and a short description. You can assign depreciation areas from different
charts of depreciation to the same cross-company depreciation area.
Asset Transfer: Exercise Time

? Perform an intra company transfer between asset class 3000 (office

equipment) and 3100 (vehicles). Transfer 80,000 (or any other
amount) to a new asset master record in the correct asset class
(3100).
? Post an acquisition with a value of 50,000 to one of your company cars
in company code AA## on January 01, PY. After practically two years
of use in your company code AA##, the asset is to be transferred to
company code BB## on December 31, CY. The net book value of the
asset is entered in the new company code, where it will be depreciated
for three years. Take the agreed sale price as Rs 35000.
Asset transactions :Asset Under Construction (AuC)

Assets produced in the organization have two phases that are

relevant to Asset Accounting:
. The under construction phase
. The useful life phase
Asset transactions :Asset Under Construction (AuC)
The transfer from the under-construction phase to completed asset is
referred to here as capitalization of the asset under construction.
This phase can be managed in the following ways (depending on the
functions you need):
. As a normal asset master record (for summary settlement)
. As an asset master record with line item management

When you capitalize the AuC , you transfer the values to one or more
completed assets. This transfer is either done in a lump sum or with line
item settlement.

When capitalizing the AuC, the system automatically separates the

transactions from the previous years from the transactions from the current
year. This is done by using different transaction types.

By using Investment Management (IM) capital investments can be

represented simultaneously as AuC (for accounting purposes) and internal
orders or projects (for controlling purposes).
Asset transactions :Asset Under Construction (AuC)

• Select all line items that you want to settle in the same proportion to the
same receiver.
• Define distribution rules for these line items.
• Post the settlement of line items to the specified receivers using the
distribution rule.

If you want to settle using amounts then you have to select and distribute
one line item after the other.
Asset Under construction : Exercise Time

? Create master record for the Asset Under construction

? Post three acquisitions (for the previous and current year) to your asset
under construction. Jan. 1, PY: 10,000 Jan. 1, CY: 60,000 Feb 1, CY:
35,000
? Distribute its values and capitalize it. Settle the acquisition of 60,000
completely to Forklift A . Settle the other two acquisitions to the AuC as
follows: 70 percent to the asset Forklift B and 30 percent to the asset
Forklift C.

Tips :
• You can enter the current date as the settlement date,
• Assign a settlement profile to your company code. SAP provides settlement profile
AI in the standard system.
Asset transactions : Unplanned depreciation

When you enter the transaction type, the system recognizes that you want to
perform manual depreciation (for example current-value depreciation).
In a dialog box, you can select the depreciation areas for which you want to
enter depreciation. The depreciation could be current-value depreciation, for
example, that is allowed for book depreciation but not for tax depreciation

After you have manually planned depreciation, the system does not create
an FI document immediately. This document is not generated until the
depreciation posting program is run.
Asset transactions : Unplanned depreciation

Audit trail:
You can use a special report to display manual depreciation:

SAP Easy Access → Fixed Assets → Information System → Reports on Asset

Accounting → Explanations for P&L → International → Manual Depreciation.

Similarly, you can post write-ups or post-capitalization by choosing the

appropriate transaction type and the depreciation areas you want to post.
Unplanned depreciation: Exercise Time

One of the assets, which was delivered and capitalized last year has
involved in an accident in the current year. (If there is no such asset ,
create one )
? Enter this long-term, unplanned reduction of value in the system with
today's date. The unplanned depreciation amount should be higher in
the book depreciation area than in the cost-accounting depreciation
area.
? Display the asset values. Can you understand why there is no FI
document?
? What transaction type would you use to post unplanned depreciation
on a new acquisition?
Asset Accounting : Asset transactions

Summary:

You should now be able to :

Post integrated and non-integrated asset acquisitions in the

system
Post integrated and non-integrated asset retirements in the
system
Represent intracompany and intercompany asset transfers
in the system
Represent assets under construction in the system
Represent unplanned depreciation in the system
Asset Accounting
Asset Accounting : Periodic Processing

Objective:

After completing this unit, you will be able to :

Define depreciation areas

Describe how a depreciation term is used in different depreciation areas
Control the calculation of depreciation
Analyze depreciation values
Initiate the depreciation posting run
Explain the tasks of the fiscal year change and year end closing
Asset Accounting : Periodic Processing

Periodic processing comprises the tasks in Asset Accounting that must be

performed at periodic intervals.
Asset Accounting : Periodic Processing

For planning primary costs on a cost center basis, you can periodically
determine planned depreciation and interest and pass these on to primary
cost planning in the CO system via a report.
Investment support is a subsidy that a company receives for certain
asset investments. Assets that are eligible for such a subsidy are marked in
the asset master records with an investment support key. All specifications
for claiming the investment support are stored in the definition of this key.
The claim can be posted manually or in a mass procedure.
Inflation management is required in countries with high rates of inflation
or deflation.
The Schedule Manager in FI-AA can be used to define, schedule, process,
and control periodically recurring processes
Periodic processing : Depreciation

The system supports the following direct types of depreciation:

Ordinary depreciation: This is the planned reduction in asset value due to
normal wear and tear.
Special depreciation: This represents a purely tax-based type of
depreciation for wear and tear where the percentage may be staggered
within a tax concession period, without taking the actual wear and tear on
the asset into consideration.
Unplanned depreciation: This is concerned with unusual circumstances,
such as damage to the asset, that leads to a permanent reduction in its
value.
Unit-of-production depreciation: This takes fluctuations in activity into
account for the depreciation calculation. It makes the amount of
depreciation dependent upon seasonal usage of the asset (for example,
number of miles traveled or units produced).
Periodic processing : Depreciation

Specifications and parameters that the system requires to calculate

depreciation amounts are entered in calculation
Calculation methods can be assigned to a depreciation key.
Periodic processing : Depreciation process

The asset master record contains the depreciation terms which calculate the
annual depreciation using the depreciation key and the useful life.
According to the purpose of the depreciation area, other terms, such as
revaluation or imputed interest, are also calculated.
The system determines the depreciation start date using the asset value
date and the period control method.
The Asset Explorer displays the values and the depreciation for every
transaction and each area and also the calculation of depreciation values.
Note :Changing the Customizing definition of the depreciation keys does not
automatically lead to a correction of depreciation values that have already
been calculated for individual assets. For that to happen, recalculation of
depreciation has to be executed.
Depreciation: Depreciation engine
Calculation on basis of period intervals
In many cases the new calculation program calculates the same depreciation
amount as the old logic. However, the new Depreciation Engine does, in
principle, enables a more precise calculation.
Depreciation: Time dependent dep terms

The following parameters can be changed on a time dependent basis :

• Depreciation key
• Useful life (year /period)
• Variable depreciation amount
• Absolute scrap value
• Percentage scrap value

With the use of time-dependent intervals (in conjunction with the new mySAP
ERP Depreciation Engine) depreciation can be calculated more accurately
than was previously possible.
If time-dependent depreciation terms are not used, a change would have the
effect that all open (and future) fiscal years are recalculated. See example …
Depreciation: Time dependent dep terms
Depreciation : Cost accounting Area
It can be defined whether interest should be calculated for the cost-
accounting depreciation area, and whether depreciation should continue
below zero. These specifications can be made while defining the depreciation
areas.
Automatic calculation:
• Depreciation after planned life end :Depreciation is continued after the
end of the planned useful life.
• Depreciation below book value: Depreciation is continued after the
book value is zero. The depreciation area must allow negative net book
value (a changeover key may be used).
• Effective life after planned end (with curb): The actual, not the
planned life determines the rate of depreciation.
Example: The useful life is 10 years, so there is depreciation of 1/10 each
year. This indicator reduces the depreciation rate of 1/10 of the APC to 1/11
in the 11th year, and so on, so that the depreciation amount decreases after
the planned end.
Depreciation: Imputed Interest
For cost accounting, calculation of imputed interest on the capital tied up
in assets can be done. Specify the following settings:
Allow the calculation of imputed interest for the depreciation area.
Determine that interest should be posted for the company code and the
corresponding depreciation area.
Use a depreciation key to which calculation methods for the depreciation
type Interest are assigned, or define such a key yourself.
If the calculation of the interest is based on a replacement value, the
system calculates indexed interest.
The system posts interest simultaneously during the periodic depreciation
posting run. It posts to the accounts that are entered in the relevant account
determination for each depreciation area. Furthermore, an additional
account assignment can be made to the cost center or the internal order
entered in each asset master record (as is the case with depreciation).
Depreciation: Replacement values/Indexing
If revaluation (indexing) is used in a depreciation area, the index series
should be entered in the asset or in the asset class for calculating the
replacement value
The index series must be assigned to an index class. This class contains the
essential control parameters for the index series. Only year-dependent index
classes are used.
Index figures for the index series have to be specified for each fiscal year. If
they are missing, the system switches to the simulated annual rate of
revaluation.
An indexed revaluation can also be calculated for accumulated depreciation
and imputed interest (if the interest calculation key is based on replacement
value).
Specify in the depreciation area if you want to post to the general ledger,
indicating whether you want to post revaluation of APC only, or also include
depreciation/interest
Depreciation: Depreciation Process

The program RAPOST2000 directly posts to the G/L accounts and

additional account assignment objects. Using a test run, you can check for
any possible errors (such as locked cost centers). Any errors that occur are
displayed in an error list.
Only real CO account assignment objects can be posted. However, you can
make additional, statistical postings to other objects.
The following can be posted
1. Ordinary depreciation (book depreciation and cost-accounting)
2. Tax depreciation, or allocation and write-off of reserves due to special
tax depreciation
3. Unplanned depreciation (or other manually planned depreciation)
4. Imputed interest
5. Revaluation of APC or of accumulated depreciation
Depreciation: Depreciation Process
Periodic Processing :FY change and YE closing
Fiscal year change (T Code AJAB )
A fiscal year change represents the creation of a new fiscal year for a
company code. At the fiscal year change, the asset values from the
previous fiscal year are carried forward cumulatively into the new fiscal
year.
Once the fiscal year change takes place, you can post to assets using
value dates in the new fiscal year. At the same time, you can, however,
continue to post in the previous fiscal year, provided this has not been
closed as a result of the year-end closing.
The earliest that you can carry out a fiscal year change is in the last month
of the old fiscal year.
Before you can change to fiscal year YYYY, you must have already closed
fiscal year YYYY-2. You can have a maximum of two fiscal years open for
posting at one time.
The fiscal year change has to be carried out as background processing
for performance reasons
Periodic Processing :FY change and YE closing

Year end closing (T Code AJRW )

The fiscal year change has to be carried out in Asset Accounting before
the year-end closing (SAP FI-AA).
The system only closes a fiscal year in a company code if
1. The system found no errors during the calculation of depreciation (such
as incorrectly defined depreciation keys)
2. Planned depreciation from the depreciation areas to be posted has been
completely posted to the general ledger
3. Balances from depreciation areas that are posted periodically have been
completely posted to the general ledger
4. All assets acquired in the fiscal year have already been capitalized. Since
this check does not make sense for assets under construction, you can
prevent it from being performed for these assets by means of the asset
class.
5. All incomplete assets (master records) have been completed.
Periodic Processing :FY change and YE closing

Year end closing (T Code AJRW )

Once the fiscal year is closed, you can no longer post or change values
within Asset Accounting (for example, by recalculating depreciation).
You can undo a year-end closing that has already been performed if you
establish that fixed assets do have to be corrected after all.
The fiscal year that is closed is always the year following the last closed
fiscal year. You cannot close the current fiscal year.
The year-end closing in Asset Accounting must be performed before the
year-end closing in General Ledger Accounting.
You have to carry out the year-end closing as background processing for
performance reasons.
Periodic Processing :FY change and YE closing
Periodic Processing :Periodic APC value postings
Settings for using RAPERB2000:

. Define new document type: Integration with the General Ledger

→ Post Depreciation to the General Ledger → Specify Document Type for
Posting of Depreciation → Define Document Types .
. Create number range interval: Choose the Number range information function from
above to go directly to maintenance of the number range interval and create a new
interval.
. Create the new document type for your company codes Integration with the
General Ledger → Post APC Values Periodically to the General Ledger → Specify
Document Type for Periodic Posting of Asset Values.
Periodic Processing :Exercise Time

? Post 10,000 on January 01, CY to one of your master records of class -

fixtures and fittings where data has not been posted to so far.(If there
is none , create one ).Check the planned depreciation shown and the dep
key
? Change the depreciation terms in depreciation areas 01 and 02 . Analyze
the planned book depreciation again in the Asset Explorer. Has the planned
depreciation amount changed ?

? Check whether all depreciation keys in your Chart of depreciation have the
status “Active”. What is the name of the transaction for this?
? Do a test run of the year-end program for your company code for the
previous year. Does that give error ?
? Complete all the activities which are not yet done including Fiscal year
close and APC postings -RAPERB2000. Again do a test run for Year end
closing .
Asset Accounting : Periodic Processing

Summary:

You should now be able to :

Define depreciation areas

Describe how a depreciation term is used in different
depreciation areas
Control the calculation of depreciation
Analyze depreciation values
Initiate the depreciation posting run
Explain the tasks of the fiscal year change and year end
closing
Asset Accounting
Asset Accounting : Information System

Objective:

After completing this unit, you will be able to :

Choose and execute the various Asset accounting reports

Set up variable sorting and totaling for Asset reporting
Create the Asset history sheet and structure it to meet your needs
Generate a depreciation forecast
Simulate depreciation for Assets
Information System : AA Area Menu

The area menu for reporting is called FIAA Information System Asset
Accounting. This is embedded in the Asset Accounting area menu
(ASMN).
Information System :ABAP list viewer

All line items are evaluated by the ABAP List Viewer. Its user-friendly
characteristics support the dynamic creation of layouts.
The new graphical design makes it even simpler to process and display
lists and reports using the List Viewer grid control. Important List Viewer
functions:
1. Deleting and inserting columns
2. Arranging the values in columns in ascending or descending order
3. Calculating totals or subtotals across one or more columns within a list
4. Using layouts to save an individual report structure so that you can use it again
later
5. Setting filters: It is possible to display only those line items that have some
connection with a particular criterion
All reports allow you to sort/total data in different ways using freely
definable sort criteria
Information System :Asset history sheet
The asset history sheet is the most comprehensive year-end report or
intermediate report. You can create it using any sort versions, and with totals at
any group level, just like any other report. You can create a compact totals list
that does not contain information on the individual assets.
By using report interfaces, you can display the history sheet for the individual
assets that form the total. You can drill down to the asset value display.
Different reports can be called up from other SAP R/3 components.SAP supplies
country-specific versions of the asset history sheet. These meet the legal
requirements in the given country. There are also additional history sheet versions
(to display the development of special depreciation).
Information System :Asset Explorer

Asset Explorer offers extensive possibilities for evaluating individual asset

master records.
Information System : Asset Explorer

Choose Display dep. calc. to see a detailed display of the calculation of

depreciation in the system.
The Posted Values tab page displays not only the planned data for a
fiscal year, but also the amounts actually posted to date.
Asset Explorer can also be used to create a preview of how the values for
individual assets will develop by means of simulated transactions
and/or simulated depreciation terms
You can start reports from within the Asset Explorer. You can also create
your own report variants for these reports by choosing Goto
→Maintain Reports.
Information System : Depreciation simulation

When you simulate the development of asset values, you can change all
the important depreciation terms using a simulation version and simulate
the depreciation for future fiscal years.
Sort versions and the options for a totals report are also available.
In the forecast depreciation for your planned capital investments can also
be included . In order to take advantage of this option, you have to be
managing the planned investment amounts as planned costs on an order
or project in CO.
By assigning depreciation terms and a planned start-up date to the order
or project, you make it possible for the planned depreciation to be
displayed.
From the list, asset value display of each selected asset can be drilled
down .The evaluation date is relevant for the value display.
Information System : Depreciation simulation

Simulation versions allow you to simulate a change in depreciation method

for asset value/depreciation reports.
For each area, asset class, and depreciation key, specify which
depreciation key and useful life should be chosen as alternatives for
simulation. The validity interval excludes assets with a capitalization date
that lies outside that range.
A substitution rule can also be defined to include other depreciation
parameters in the simulation.
Information System :Exercise Time

? Create a list of all (posted) assets of your company code, sorted and
totaled according to cost center. Use SAP Mail to send this list to any other
user.
? Change an asset list of your company code, so that the assets of the
company code are listed by acquisition value in descending order . Save
these settings in a (user-specific) display variant / a(user-specific) layout
and then try to call the variant again.
? Request the asset sheet history (RAGITT_ALV01) and using sort version 13
and history sheet version 0001, display all assets of your company code,
first individually, and then as a total.
? Post an acquisition to the company car master record(If there is none ,
create one).Post a value of 50,000 in the first half of the current year
(1/1/CY)
? Think about reducing the useful life from five to four years , at least in
areas 01 and 02. Simulate this change in the Asset Explorer.
Asset Accounting : Information System

Summary :

You should now be able to :

Choose and execute the various Asset accounting

reports
Set up variable sorting and totaling for Asset reporting
Create the Asset history sheet and structure it to meet
your needs
Generate a depreciation forecast
Simulate depreciation for Assets
Asset Accounting

Course summary

You should now be able to :

 Configure Asset Accounting

 Use Asset Accounting