S4HANA Asset Sample PDF

1 Trainer: Pradeep
SAP New Asset

Accounting
Configuration S4 HANA
By
Pradeep Hota, CA & CFA

SAP Consultant & Business Analyst
eMail:pradeephota.sap@gmail.com
email:pradeephota.sap@gmail.com
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Notes
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INTRODUCTION
New Asset accounting module in SAP manages fixed assets data of an
organization by way of asset master records. Asset accounting module thus
acts as a sub ledger to the FI module for managing asset records.
SAP gives us the functionality in Asset module of managing depreciation and

assets in parallel according to various reporting requirements i.e. Local
Reporting, Parent company reporting, Tax reporting, US GAAP reporting and
so on.
We must assign a chart of depreciation to each company code that is defined
in Asset Accounting. SAP provides country-specific charts of depreciation with
predefined depreciation areas. These charts of depreciation serve only as a
reference for creating your own charts of depreciation, and are therefore not
directly accessible in the SAP system. When creating a chart of depreciation,
you have to copy the reference chart of depreciation.
New Asset Accounting has redesigned the Asset Accounting module with the
following functionality:-
1) Reference depreciation area is no longer needed for setting up multiple

depreciation areas.
2) All depreciation areas now post acquisition and retirement online
3) New technical clearing account is needed to balance each depreciation
area
4) No restriction of transaction type to a particular depreciation area.
To use the New Asset Accounting in SAP Accounting powered by SAP HANA
the following components are not allowed:
• Joint Venture Accounting (JVA)
We cannot use new Asset Accounting in company codes in which JVA

is active, and the reverse is also true.
• From the Financials Extension (EA-FIN):
Lease Accounting Engine (LAE)
• Real Estate (RE), that is, classic Real Estate Management
• From Funds Management (PSM-FM) or Industry-Specific Component

Public Sector (IS-PS):
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This material covers an implementation approach for new installation of

Simple Finance (S4 HANA) and does not cover the migration approach from
Classic Asset Accounting to New Asset Accounting.
We configured in the SAP New GL configuration (Simple Finance) a company

code 6600 Universal Ltd. The currency of the company code is USD. The
reporting period is April to March for the Group. The parent company of
Universal Ltd is located in India. Therefore Universal Ltd. is required to report
figures in INR. 3 currencies are configured for the company code first is USD
(Local reporting), second is group currency as INR and third is global
company currency as USD.
Universal Ltd is required to report depreciation for local reporting as per the
statutory reporting requirement of USA. Further it is also required to report
depreciation as per the parent company located in India.
We have 2 different reporting requirements:-
1) Parent (Group) reporting

2) Local Reporting
We will configure the following depreciation areas:-
01 Local depreciation
10 Local depreciation – USD
11 Local depreciation – Global currency
30 Group depreciation
31 Group depreciation – USD
32 Group depreciation – Global currency
Let us proceed with the configuration of New Asset Accounting
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1 Organizational Structures
For configuration we use the following path on the SAP application screen:-
SAP Menu  Tools  Customizing IMG  SPRO - Execute Project 
Configuration for all the modules will be done here. The above path will
not refer henceforth; we will directly refer to the IMG node.
1.1 Copy Reference Chart of Depreciation/Depreciation areas
SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

(New) Asset Accounting (New)  Organizational Structures  Copy
Reference Chart of Depreciation/Depreciation Areas
Here we define our chart of depreciation. The chart of depreciation is a list of

depreciation areas arranged according to business and legal requirements.
The chart of depreciation enables us to manage all rules for the valuation of
assets in a particular country or region.
We assign a chart of depreciation to each company code that is defined in

Asset Accounting. SAP provides country-specific charts of depreciation with
predefined depreciation areas (for example, 0US for the USA). These charts
of depreciation serve only as a reference for creating our own charts of
depreciation, and are therefore not directly accessible in the SAP system.
When creating a chart of depreciation, we have to copy the reference chart of
depreciation.
Let us copy the chart of depreciation from US chart of depreciation to create

new chart of depreciation.
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Double Click on
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Click on Copy and update the following: -
0US – Sample chart of depreciation: USA as the source to copy
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Click
You get the message as follows:-
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Click
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Click on as we do not want to copy any number ranges. We

will maintain them manually.
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Click to see the activities which are completed.
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The chart of Depreciation is now copied from 0US to Z660.
1.2 Specify Description of Chart of Depreciation

(New) Asset Accounting  Organizational Structures  Copy Reference
Chart of Depreciation/Depreciation Areas
Change the Description of chart of depreciation so copied.
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Double Click
Change the description from
And update the following: -
Click on Save
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1.3 Copy/Delete Depreciation Areas

(New) Asset Accounting  Organizational Structures  Copy Reference
Chart of Depreciation/Depreciation Areas
In this step we delete the depreciation areas which are not required.
Double Click on
And update the depreciation area
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We will delete the unwanted depreciation areas which were copied from the
reference chart of depreciation.
Update the description as follows:-
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Delete the following depreciation areas:-
Then Click on Delete
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Since there are 3 currencies configured for company code 6600 i.e.
Local currency, group currency and global currency we will need 3
depreciation areas for each reporting
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Assign accounting principle the way it is assigned to the ledgers. In this

case local depreciation area will be assigned to ZLOC and group
depreciation area will be assigned to IFRS
Double click
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Change to Area Post in Real time
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Click on
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Double click each depreciation area and change the short description
Change to
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Similarly others…
Further one important change we need to do is for all depreciation areas

make Acquisition value and Net book value as All values Allowed as shown
below
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Similarly update all other depreciation areas
Then save the changes.
1.4 Specify Transfer of APC Values

(New) Asset Accounting (New) General Valuation  Depreciation
AreasSpecify Transfer of APC Values
Here we define transfer rules for the posting values of depreciation areas.
These transfer rules let us ensure that certain depreciation areas have
identical asset values.
In this field, we specify the reference depreciation area that provides values to
another depreciation area. The system transfers the posting amounts of any
transactions that affect acquisition and production costs from this area to the
dependent area.
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Note: Major change in Simple Finance is the decoupling of depreciation

areas. Different depreciation areas with different reporting requirements
do not have to depend on a single depreciation area any longer i.e.
earlier it was depreciation area 01.
So for example in our case we have 2 different reporting requirements Local

and Group reporting. Depreciation area 01 and Depreciation area 30 Group
reporting will not be dependent on each other. Values will be flowing to each
of the depreciation area separately. No reference depreciation area will be set
for them i.e. 00 will be set.
Reference depreciation area will only be set for the depreciation areas
maintaining values in foreign currencies. The prerequisite being the
depreciation areas must be assigned to the same accounting principle.
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You see above that the Depreciation area 30 is referencing depreciation area
01, which is the traditional set up. But we no longer want this and do not want
depreciation area 30 to reference any depreciation area and hence will make
it 00.
Depreciation area 10 managing values in group currency is referencing

depreciation area 01, which is fine and need not be changed
Depreciation are 11 managing global currency is referencing depreciation

area 10, which is fine and need not be changed
Similarly depreciation 31 is referencing depreciation area 30 and depreciation

area 30 which is fine.
Depreciation area 32 (Group depreciation global currency) is wrongly

referencing depreciation area 01 and must be changed to depreciation area
31 or to depreciation area 30
Accordingly let us change to following:-
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Click
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Click on
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1.5 Specify Transfer of Depreciation Terms

Areas Specify Transfer of Depreciation Terms
Similarly transfer of depreciation terms follows the same rules as for APC
values.
We see below that Dep. Area 30 is referencing area 01 which needs to be

changed to 00
Further depreciation area 10 should reference depreciation area 01 and

depreciation area 11 should reference depreciation area 10.
Depreciation area 32 should reference depreciation area 31
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Let us proceed with the changes as follows:-
Click
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Click on
1.6 Specify Depreciation Area Type

Areas Define Depreciation Areas
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Double click Specify Area Type
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Change to the following:-
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Click on
1.7 Specify the Use of Parallel Currencies

(New) Asset Accounting (New) General Valuation  Currencies
Specify the Use of Parallel Currencies
Since parallel currencies are used in our company code we need to assign a
currency type that is suitable for the given parallel currency to depreciation
areas.
The system then automatically updates the corresponding posting documents
with the additional values from these depreciation areas. The depreciation
areas for the parallel currencies are not allowed to post to the general ledger.
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Update the group currency type 30 for depreciation area 10 and 31 which will
manage the group currency.
Update the Global company currency type 60 for depreciation area 11 and
depreciation area 32
Click on
1.8 Assign Input Tax Indicator for Non-Taxable Acquisitions

(New) Asset Accounting (New) Integration with General Ledger
Accounting Assign Input Tax Indicator for Non-Taxable Acquisitions
In this step, we specify an input tax indicator per company code. The system
then uses this indicator when we post acquisitions that are not subject to tax,
but which are posted to accounts that are tax-relevant.
Assign input tax indicator I0 (Input tax 0%)

Assign output tax indicator O0 (output tax 0%) to company code 6600
Universal Ltd.
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Click on Save
1.9 Assign Chart of Depreciation to company code

(New) Asset Accounting (New) Organizational Structures  Assign Chart
of Depreciation to Company Code
One of the important steps is the assignment of chart of depreciation to the

company code. Here by this step, we link the asset accounting module to the
FI company code.
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Assign Chart of depreciation Z660 to company code 6600
Click on Save
1.10 Specify Account Determination

(New) Asset Accounting (New)  Organizational Structures  Asset
Classes  Specify Account Determination
The key of an account determination must be stored in the asset class. The
account determination links an asset master record to the general ledger
accounts to be posted for an accounting transaction using the asset class.
Usually, we need at least the same number of account determinations as you
have asset balance sheet accounts in the general ledger
Click on and update the following: -
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Click on Save
1.11 Create Screen Layout Rules

(New) Asset Accounting  Organizational Structures  Asset Classes 
Create Screen Layout Rules
The screen layout specifies the status of the fields in the asset master record.
We use the screen layout to determine if fields are required entry or optional
entry fields, or if they are suppressed completely.
In this step, we create only the keys and descriptions of the screen layout
controls. We define the field group rules for the screen layouts themselves in
the step Master data.
We can enter a screen layout rule in one of two places: either in the part of
the asset class valid in the entire client, or in the part of the asset class valid
for the chart of depreciation. The screen layout rule is then valid either for all
assets in the asset class, or for all assets in the asset class/chart of
depreciation.
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We can use the standard screen layout or we can copy the standard screen
layout to create new one.
We will use the standard screen layout as seen below:-
1.12 Define Number Range Interval

Define Number Range Interval
Number range interval is required for the main asset number for the company
code. Normally we should specify internal number ranges for assets. The
number range key is then assigned to each of the asset class.
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Update Company code 6600
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And click on
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Update the following:-
Click and update the following: -
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Likewise we will creates keys 03, 04 and 05, 06,07 and 08
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Click on Save
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Click
1.13 Define Asset Classes

Define Asset Classes
The asset class is the most important criteria for structuring fixed assets from
an accounting point of view. Every asset has to be assigned to exactly one
asset class. The asset class is used to assign the assets (and their business
transactions) to the correct general ledger accounts. Several asset classes
can use the same account assignment. It is possible to make finer distinctions
at the level of the asset class than at the level of the general ledger accounts.
The most important tasks of the asset classes are:
Assignment of default values when creating assets.
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Grouping of assets for reporting purpose
We should group together assets with the same depreciation terms into an
asset class.
Click on Save
Click
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Click on
Click on
Click
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Click on
In case of Asset under construction update the following: -
Click on
Click
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Click on
Click on
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1.14 Specify Chart-of-Dep.-Dependent Screen Layout/Acct

Assignment (Optional)
Specify Chart-of-Dep.-Dependent Screen Layout/Acct Assignment
Generally, the control specifications (the screen layout and the account
determination) for the asset class apply throughout the client, that is, for all
charts of depreciation. It is therefore sufficient to make control specifications
once per asset class.
We only need to carry out this step, if, contrary to the usual case, we want
these control specifications to be country-specific (that is, different depending
on the chart of depreciation). The system then uses the entries we make here
depending on the chart of depreciation in the given company code. The
system then ignores the control specifications in the asset class that are
independent of the chart of depreciation.
Normally this is not required.
We do not do any configuration here.
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2 Integration with the General Ledger
2.1 Define How Depreciation Areas Post to General Ledgers

Accounting Define How Depreciation Areas Post to General Ledger
This step was already configured when we defined the depreciation area.
With Simple Finance the periodic posting of APC i.e. transaction code ASKB
is redundant. More than one depreciation area can now post online.
Update the following
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Area 01 and Area 30 Posts in real time.
2.2 Assign G/L Accounts

Accounting Assign G/L Accounts
In this step we assign the balance sheet accounts and the depreciation
accounts for Asset accounting.
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Select
And click on
Select Buildings
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And double click on and
Double click Area 1
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Update the following: -
Click on Save
For Group depreciation area 30 since it is an independent depreciation

area the same GL accounts needs to be assigned.
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Click twice
Double click
Double click
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Also allocate the same account to group depreciation area
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Similarly allocate GL codes to other account determination.
Double click
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Double click
Allocate to group depreciation area
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Double Click
Double click
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Click on Save
Similarly for dep area 30
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Similarly update for Vehicles
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Similarly update for depreciation area 30
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Now update accounts for depreciation area 30
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For area 30
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Similarly update for all other Asset classes such as Furniture Fixtures,
Hardware (IT)
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For Asset under construction update as follows:-
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For Area 30
Click on
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2.3 Define Technical Clearing Account for Integrated Asset

Acquisition

Accounting Technical Clearing Account for Integrated Asset Acquisition 
Define Technical Clearing Account for Integrated Asset Acquisition
This is a new configuration step in New Asset Accounting and is a mandatory

configuration.
The operation entry documents post to a technical clearing account. This

document does not update the asset master.
A ledger specific document is automatically posted to the asset master which
clears the technical clearing account balancing it to zero.
Update the chart of accounts and GL account.
This GL account is a balance sheet account and must be an Asset

Reconciliation account and no line item display permitted.
2.4 Specify Financial Statement Version for Asset Reports

Accounting Specify Financial Statement Version for Asset Reports
We specify which financial statement version the system has to use as a

default per depreciation area. This default applies when the financial
statement version is contained in the sort version used for a given report.
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Select company code 6600
And click on
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Click on
2.5 Specify Document Type for Posting of Depreciation

(New) Asset Accounting  Integration with the General Ledger Post
Depreciation to the General Ledger  Specify Document Type for Posting of
Depreciation
The standard document type AF (Dep. Postings get attached to the co. code),
since we have copied the chart of depreciation form 0US.
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Double click
2.6 Specify Intervals and Posting Rules

Accounting Post Depreciation to General Ledger Accounting Specify
Intervals and Posting Rules
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We define the posting cycle (how often depreciation is posted) whether

monthly, quarterly, semi annual or annual and the account assignment rules
for the depreciation-posting run.
The values for posting cycle are as follows:-
1 - monthly posting
3 - quarterly posting
6 - semi-annual posting
12 - annual posting
Select company code 6600
Double Click on
Double Click on
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By default it is set as Monthly posting, in case you want to set up differently

you can either set up as Bi-monthly or quarterly depending on the closing
process of the customer.
Thereafter select deprec. Area 30 and click on
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Click on
2.9 Specify Document Type for Posting of Depreciation

Accounting Post Depreciation to General Ledger Accounting Specify
Document Type for Posting of Depreciation
Here, you specify a default document type for periodic posting of asset
balance sheet values (values other than depreciation) transaction code ASKB
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Double click
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3 Valuation
3.1 Define Screen Layout for Asset Depreciation Areas

(New) Asset Accounting (New) Master Data  Screen Layout  Define
Screen Layout for Asset Depreciation Areas
We can use it in a similar way to control the features of the depreciation areas
in the asset master record. It is possible to make different specifications in
each depreciation area.
SAP delivers two standard versions:

Depreciation on main asset number
Depreciation on sub number
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Select
Double Click on
Update the following Maint. level: -
This means depreciation keys and useful life are to be maintained at the
asset class level.
Click on Save
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4 Depreciation
4.1 Determine Depreciation Areas for Unplanned

Depreciation

(New) Asset Accounting  Depreciation  Unplanned Depreciation 
Determine Depreciation Areas
In this step, we define the depreciation areas in which we want to manage

unplanned depreciation. This specification means that this value type is
allowed in these depreciation areas (that is, the system does not issue an
error message when we enter the corresponding depreciation terms in the
asset master record).
The unplanned depreciation indicator is already set for all the depreciation
areas.
5 Configuring the depreciation key
5.1 Define Base Methods

(New) Asset Accounting (New) Depreciation  Valuation Methods 
Depreciation Key  Calculation Methods  Define Base Methods
The base method contains general control parameters the system needs for
calculating depreciation. We enter base method in a depreciation key.
In the base method we specify the following:-
1) Depreciation type
2) Depreciation calculation method – This is the most important

parameter in the base method. For e.g. When we choose the stated
percentage, we have to enter a percentage in depreciation key
3) Treatment of the end of depreciation
Let us check one of the base methods
Double click
We will use the one below for percentage method of calculation of

depreciation (useful life is ignored here)
We will create one new base method for useful life method of calculation of
depreciation (useful life derives the percentage here)
Click on
5.2 Define Declining-Balance Methods (Optional)

Depreciation Key  Calculation Methods  Define Declining-Balance
Methods
Use of declining balance method:-

The normal declining-balance method of depreciation multiplies the straight-
line percentage rate resulting from the useful life by a given factor. Since a
relatively short useful life can produce a very large depreciation percentage
rate, we can specify a maximum percentage rate as the upper ceiling limit in
the declining-balance method. A similar principle applies for a very long useful
life. Entering a minimum percentage rate prevents the percentage rate from
sinking below a given level.
Let us check the declining balance methods SAP has provided.
We will use 001 declining balance method.
5.3 Define Maximum Amount Methods (Optional)

Depreciation Key  Calculation Methods  Define Maximum Amount
Methods
In this step, we define maximum amount methods. We then assign them to

depreciation keys.
The calculation method contains a maximum depreciation amount that is not
allowed to be exceeded before a certain calendar date. If the depreciation
calculated by the system exceeds this maximum amount, then the system
reduces depreciation to this maximum amount.
We can specify how the maximum amount applies within the time period
specified for it. It can either apply to to each individual year in the specified
time period, or to accumulated depreciation.
There is one standard maximum amount method.
Select
Double click
5.4 Define Multi-Level Methods (Important)

Depreciation Key  Calculation Methods  Define Multi-Level Methods
We define multi-level methods and then assign them to depreciation keys.

Each level represents a validity period for a given percentage rate.
Here we define whether the depreciation key is straight-line method or

declining balance method. We select the relevant base value.
Here we also specify the percentage rate of depreciation.
We will configure 2-multi level methods one for Straight-line method and
another for Declining balance method or Reducing balance method.
Click on
Click on Save
Double Click on
Acq. Year - Value we have entered is 9999 (valid for years)

Years - 99 (the number of years valid for)
Per - 0 ( Validity period in months)

Base Value - 01 means Acquisition value
Percentage - 10 % (10% calculated on Base value i.e. Acquisition value)
Click on Save
Let us configure another Multi-level method for Declining balance method
Click on
Double Click on
Click on
Base value: 24 (Net Book value)
Click on Save
We will configure another multilevel method to be used for depreciation key

using Useful life.
Click on
Double click
Click on
Click on
5.5 Maintain Period Control Methods

Depreciation Key  Calculation Methods  Maintain Period Control Methods
Here we maintain period control methods. We assign these to depreciation

keys.
In the period control method we can specify the depreciation start date for
acquisition, acquisition in the following years, retirements and transfer.
Let us check the standard period control methods
01 - Prorata at period start date

02 - Pro rata upto mid-period at period start date
5.6 Maintain Depreciation Key

Depreciation Key  Maintain Depreciation Key
In this step, we maintain depreciation keys by assigning calculation methods

to them. We can divide the duration of depreciation into several phases.
When we enter a changeover method for one of these phases, the system
changes over to the next phase as soon as the event specified in the
changeover method has occurred. The system then uses the depreciation
calculation that is specified in the calculation method for this phase.
1. Maintain additional depreciation keys and their descriptions in accordance

with our requirements.
2. Assign calculation methods to the depreciation keys.
Double Click on
Base Method: 0014 (Ordinary explicit percentage after end of life)

Prd. Control: 001 (01/01/02/02) depreciation on capitalization from the start of
the month and when retired no depreciation in the month retired.
Multilevel method: ZP1 (already configured with 10%)
Click on Save
Click twice
Click on to activate the depreciation key.
Let us configure another depreciation key with Reducing balance method
Double Click on
Click on Save
Click twice
Click on to activate the depreciation key.
Click on
Let us create depreciation key YLIN based on useful life method.
Click on
Double click
Click on
Click on
Click back and activate the depreciation key by selecting it
Click on and click on save
5.7 Determine Depreciation Areas in the Asset Class

(New) Asset Accounting (New) General Valuation Determine
Depreciation Areas in the Asset Class
Generally, the assets in an asset class use the same depreciation terms
(depreciation key, useful life). Therefore, we do not have to maintain the
depreciation terms in the asset master record. Instead, there can be default
values from the asset class.
In this step, we specify the depreciation terms that are to be used in our asset
classes. Depending on the definition in the screen layout control used, these
depreciation terms are offered either as optional or mandatory defaults when
we create an asset.
For each asset class, we can maintain as many charts of depreciation with
their depreciation areas as we need. This allows you to use the asset class in
all countries belonging to the client.
Select the asset class
And Double Click on
Update the default depreciation keys as follows:-
Click on
Similarly update
Change the depreciation key to default to ZPM1 for local depreciation and
YLIN for group depreciation.
Click on
Similarly select asset class Vehicles
Double click
Click on
Likewise change other default of asset classes to YLIN
Change default depreciation key to 0000 for AUC since no depreciation

is calculated for Asset under Construction
Similarly change the default depreciation key for Hardware.
6 Master data
6.1 Define Screen Layout for Asset Master Data

(New) Asset Accounting (New) Master Data  Screen Layout  Define
Screen Layout for Asset Master Data
We define the screen layout control for asset master data. The screen layout
control contains the specifications for the field groups in the asset master
record. We enter the screen layout control in the asset class. This method
allows us to structure the master record individually for each asset class.
Double Click on
Select
Double Click the following screen will appear
Select and Double Click
Here we can maintain which is required, optional or Suppressed entry or

display.
Class – If this indicator is set, it means maintenance allowable only at asset

class level
MnNo – Transfer entry from Main asset number to Sub number
Sbno – entry allowed in sub asset number
Copy – Copy field group from reference asset
The unit of measure at the asset level is maintainable at main asset level
since the is already switched on.
7 Transactions
7.1 Maintain Allocation Structures
SAP CUSTOMIZING IMPLEMENTATION GUIDE  Investment

Management Internal Orders as Investment Measures Settlement
Maintain Allocation Structures
Here you attach the cost elements which will be debited on the AUC. Further
you also maintain cost element under which it will be settled.
The allocation structure is assigned to the settlement profile.
Click on
Click on
Select
Double click
Click on
Click
Select
Double click
Click
Select
Double click
Click
Similarly you can assign for external services
Select
Double click
Click on
Click on
Click twice
Select
Double click
Click on
Click on
Similarly you can update for external services
7.2 Define/Assign Settlement Profiles

(New)  Asset Accounting (New) Transactions Capitalization of Assets
under Construction Define/Assign Settlement Profiles
This particular configuration is required for settlement of Asset under

construction to the final asset.
Double click
Select
Click
Click
Click on
Click
Double click
Click on
7.3 Maintain Number Ranges for Documents for Line Item

Settlmt

(New)  Asset Accounting (New) Transactions Capitalization of Assets
under Construction Maintain Number Ranges for Documents for Line Item
Settlmt
We only need to carry out this step if we plan to use line item settlement of
assets under construction or investment measures.
It creates a CO settlement document in the controlling area to which the asset

or the investment measure belongs. The system determines the controlling
area on the basis of the assignment of the company code to a controlling
area.
Here we define the number range intervals for the settlement documents. All
controlling areas that use the same number range interval are called a
number range group.
We should define separate number range intervals for settlement documents

from different controlling areas. This improves performance when we carry out
settlements in different controlling areas in parallel (for example, on the same
day).
Double click
Click
Click on 6600
Click
Double click
6600 is now assigned which can be seen as follows:-
Click on
Double click
Double Click
Assign Form FIAA_F001 to all the other asset classes.
Click on Save
9.6 Create/Change/Display Legacy Asset(AS91, AS92, AS93)
SAP Customizing Implementation Guide Financial Accounting (New)

Asset Accounting (New) Asset Data Transfer  Manual Data Transfer 
Legacy Fixed Asset  Create Master Data for Legacy Asset
Transaction code:
AS91 – Create Legacy data
AS92 – Change Legacy data
AS93 – Display Legacy data
Here we enter assets from the legacy system with the Acquisition value and
the accumulated depreciation per depreciation area. The values entered
in these asset masters will not update the reconciliation accounts in the
General ledger.
Let us update one legacy asset master Plant & Machinery
Click
Click
Click
Click on
Note is greyed out, this function of updating asset values is

no longer available in Simple Finance Add on for SAP Business Suite
powered by SAP HANA in transaction code AS91.
The takeover values can be updated only using AS92 or change mode
SAP Customizing Implementation Guide Financial Accounting (New)

Asset Accounting (New) Asset Data Transfer  Manual Data Transfer 
Legacy Fixed Asset  Change Master Data for Legacy Asset
Click on
Update the asset values now here
Here you update the Cumulative Acquisition Value and Accumulated

depreciation.
Click on
If there are many asset records you will obviously require an upload
program. This is possible by creating an LSMW. You will create an
LSMW in recording mode and use the above transaction code AS91 to
record all the fields.
This asset master data along with values will not automatically update the
Asset GL (Reconciliation account). You need to do it through transaction
ABLDT for updating the Asset Reconciliation account
10 Preparing for Production Startup
10.1 Activate Company Code

(New) Asset Accounting  Preparing for Production Startup  Production
Startup  Activate Company Code
In the "Activate Company Code" step, you set the live indicator (0) for the
company codes in which the test phase and legacy data transfer have ended.
The live indicator ensures that data is not deleted from live company codes by
programs for deleting test data.
After legacy data transfer and before setting a company code to live
(production status) it is mandatory to reconcile account balances, since the
transfer of legacy data does not affect the reconciliation accounts for Financial
Accounting. There is no automatic creation and reconciliation of balances
during legacy data transfer.
After completing the Asset data transfer for company 6600 Universal Ltd, we
change the status of the company code from 2 to 0 as follows
Click on
11 Activating New Asset Accounting
Applicability: This program is executed when we plan to migrate from

traditional SAP to Simple Finance.
This program is executed before we install the SAP Simple Finance add-on;
we have to ensure that the prerequisites are met. We can do so using the
program for preliminary checks RASFIN_MIGR_PRECHECK. We import this
program to our system by means of SAP Note 1939592 before we install the
SAP Simple Finance add-on. Perform this check in all of our systems - in the
Customizing system as well as in the test system and production system.
Use transaction code: SE38
Click
Select
Click
Once we get the above message we can go then go ahead with the
installation of Simple Finance and also for using New Asset Accounting.
11.1 Migrate Chart of Depreciation

SAP Customizing Implementation Guide  Financial Accounting (New) 
Asset Accounting (New)  Migration: Asset Accounting (New)  Migration
from Classic to New Asset Accounting  Migration for New Asset Accounting
 Migrate Charts of Depreciation
This step generally needs to be executed when we are migrating from classic
SAP to Simple Finance where in we need to migrate the chart of depreciation.
In our case we are not doing a migration but rather a fresh implementation of
New Asset Accounting. Nevertheless there is no harm in executing this step
just to check.
Click
Click
Click
The above message clearly states that Chart of depreciation is already

migrated.
11.2 Check Prerequisites for Activating Asset Accounting

(New)

from Classic to New Asset Accounting  Migration for New Asset Accounting
 Check Prerequisites for Activating Asset Accounting (New)
This is the final check before we activate the customizing switch of New Asset
Accounting.
Click
Once we get the above message “No error found; requirements to activate
Customizing switch has been met” we can activate New Asset Accounting.
11.3 Activate Asset Accounting (New)

from Classic to New Asset Accounting  Activate Asset Accounting (New)
By default this switch is in preparation, once we are done with the customizing
and the final check done in the earlier step we can now go ahead and activate
New Asset Accounting.
Select the radio button Activate
And click on
This activation will be saved in a customizing request as shown below
Click
Click
New Asset Accounting is now active
12 Activate Segment Reporting
This is a new functionality wherein we can activate segment reporting for

Asset Accounting.
Due to this functionality:-
 The Profit Center and Segment fields are included in the asset master
record.
 In Customizing for Asset Accounting under Integration with General

Ledger Accounting  Additional Account Assignment Objects 
Activate Account Assignment Objects, the system automatically sets

the following indicators for profit center and segment:
Activation of Account Assignment Object
Acct Assignment Object Same in Asset Master and Posting

(please manually check this on if it does not happen)
When the asset master data is being posted and maintained, the
system checks whether the asset master records have been
maintained consistently. It must be possible to derive the profit center
and the segment uniquely from the CO account assignments and from
the asset master records.
Exception: If investment measures are concerned, the profit center can

be derived from the investment measure specified in the asset master
record in the origin data. In such cases, the derived profit center of the
cost objects stored in the asset master record does not have to match
the profit center from the investment measure in the origin data. In the
system, we will have to convert the relevant error messages into
warning messages.
Important Note:
Once we activate segment reporting for Asset Accounting, we can no longer
deactivate it.
12.1 Specify Account Assignment Types for Account

Assignment Objects
SAP Customizing Implementation Guide  Asset Accounting (New) 

Integration with General Ledger Accounting  Additional Account Assignment
Objects  Specify Account Assignment Types for Account Assignment
Objects
The possible account assignment types for account assignment objects are:
APC balance sheet posting or account assignment of depreciation. In this
step, we assign account assignment types to the account assignment objects.

These assignments are dependent on
• Company code
• Depreciation area
• Transaction type
Let us update the non generic entries which means for our company code.
Select
Double click
Select
Double click
We need to update the profit center and segment account assignment objects
here.
Click on
Click on
Similarly update for depreciation area 1
Click on
12.2 Activate Segment Reporting

Integration with General Ledger Accounting  Segment Reporting Activate
Segment Reporting
Here we activate the segment reporting. The activation of segment reporting

is at client level.
Check the check box.
Click on
12.3 Fill Master Data for Segment Reporting

Integration with General Ledger Accounting  Segment Reporting Fill
Master Data for Segment Reporting (Tcode : FAGL_R_AA_ASSET_UPDT)
This transaction will update all the existing assets with profit center and
segment. The profit center and segment is populated indirectly.
To explain further, the asset master is updated with a cost center. In the cost
center master data we update the profit center. The system picks up the profit
center from this cost center master and updates it in the asset master. The
segment which is updated in the profit center master data is updated from the
profit center master data.
Click
Click Yes
Uncheck to
Execute in background
Click
Click on
Check the background job using SM37
Let us check a few assets now…
The asset master seen below is now populated with profit center and segment
The asset master seen below is now populated with profit center and segment
This brings us to an end of the New Asset accounting configuration. Please

do the transactions by referring the end user training manual.

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1 Trainer: Pradeep

SAP New Asset

Pradeep Hota, CA & CFA

SAP gives us the functionality in Asset module of managing depreciation and

1) Reference depreciation area is no longer needed for setting up multiple

• Joint Venture Accounting (JVA)

We cannot use new Asset Accounting in company codes in which JVA

• From the Financials Extension (EA-FIN):

Lease Accounting Engine (LAE)

• Real Estate (RE), that is, classic Real Estate Management

• From Funds Management (PSM-FM) or Industry-Specific Component

This material covers an implementation approach for new installation of

We configured in the SAP New GL configuration (Simple Finance) a company

We have 2 different reporting requirements:-

1) Parent (Group) reporting

We will configure the following depreciation areas:-

Let us proceed with the configuration of New Asset Accounting

SAP Menu  Tools  Customizing IMG  SPRO - Execute Project 

1.1 Copy Reference Chart of Depreciation/Depreciation areas

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

Here we define our chart of depreciation. The chart of depreciation is a list of

We assign a chart of depreciation to each company code that is defined in

Let us copy the chart of depreciation from US chart of depreciation to create

Click on Copy and update the following: -

0US – Sample chart of depreciation: USA as the source to copy

You get the message as follows:-

Click on as we do not want to copy any number ranges. We

Click to see the activities which are completed.

The chart of Depreciation is now copied from 0US to Z660.

1.2 Specify Description of Chart of Depreciation

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

Change the Description of chart of depreciation so copied.

Change the description from

And update the following: -

1.3 Copy/Delete Depreciation Areas

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

And update the depreciation area

Update the description as follows:-

Delete the following depreciation areas:-

Then Click on Delete

Assign accounting principle the way it is assigned to the ledgers. In this

Change to Area Post in Real time

Further one important change we need to do is for all depreciation areas

Similarly update all other depreciation areas

Then save the changes.

1.4 Specify Transfer of APC Values

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

Note: Major change in Simple Finance is the decoupling of depreciation

So for example in our case we have 2 different reporting requirements Local

Depreciation area 10 managing values in group currency is referencing

Depreciation are 11 managing global currency is referencing depreciation

Similarly depreciation 31 is referencing depreciation area 30 and depreciation

Depreciation area 32 (Group depreciation global currency) is wrongly

Accordingly let us change to following:-

1.5 Specify Transfer of Depreciation Terms

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

We see below that Dep. Area 30 is referencing area 01 which needs to be

Further depreciation area 10 should reference depreciation area 01 and

Depreciation area 32 should reference depreciation area 31

Let us proceed with the changes as follows:-

1.6 Specify Depreciation Area Type

SAP CUSTOMIZING IMPLEMENTATION GUIDE  Financial Accounting

Double click Specify Area Type