Closing Activities in Asset Accounting in SAP r/3

You run various closing reports, and display the closing postings that were created. In this process, you carry out the year-end closing for Asset Accounting. You will carry out the following steps:

Creating and evaluating the asset list Manual depreciation Settlement of investment orders
eriodic depreciation

Creation of the inventory list, and printing of la!els "iscal year change and year-end closing
Select , to see more information a!out this demo.

#o avoid errors in the output controller, please chec$ your printer settings !efore you start wor$ing on this process chain. #o do this, select System %ser profile &wn data. Select 'efaults on the Maintenance screen and enter the following data: "ield Start Menue Select Save. 'ata (ame of your printer

Demo Information
"or some processes, you first have to create a master record for an asset, so the process can !e repeated as often as necessary.

In order to carry out the scenario, you will need to create the following documents: An invoice, for posting costs to an investment order. You will later settle the invoice to an asset under construction. A master record for a completed factory !uilding. You will later transfer the asset under construction to this completed asset. If the following processes have already !een carried out !y another I')S user, it is not possi!le for you to carry them out completely. You can, however, carry out the transactions up to the running of the reports. *e will descri!e the usual results of the transactions. Manual depreciation: this process can only !e repeated if you reverse the manual depreciation after completing this part of the process. eriodic depreciation: you can post periodic depreciation monthly. #he process can therefore !e repeated +, times. "iscal year change: the process can only !e carried out once. -owever, it is possi!le to use only test mode. Year-end closing: the process can only !e carried out once. -owever, it is possi!le to use only test mode. You also have the option of reversing the yearend closing.

Data used during this Demo

"ields Company code Asset 'ata +... /+.0 'escription

Cost center for asset !eing +,,. depreciated lant for asset !eing depreciated 1endor )2pense account +/..

+... 3+4...

)2ample vendor )2ternal procurement

costs Investment order Asset under construction 54....,3 3.+.

Asset class for new master ++.. record 6usiness area for new master record Cost center for new master record lant for new master record "orm name for inventory list ,...

/+4.

+/..

"IAA7.../

Call the Asset List

In this first process, you call the asset list from the Info system, in order to see a list of all assets. +. Select in the SA 89/ System screen Information systems Accounting "inancial accounting. ,. &n the "inancial Accounting Information System screen, select "i2ed assets Asset values. /. &n the Asset 6alance screen, enter the following data: "ield Cost center 'ata 6lan$

Company code 8eport date 'epreciation area Sort version

+... /+.+,.+::: .+ ;!oo$ depreciation< ..., ;!y company code, plant, cost center< > ;select< > ;select< 6lan$

=ist assets Current !oo$ value lant 3. Select )2ecute.

#he list contains all assets in the company code, sorted !y plant and cost center. )ach asset is identified !y a main num!er. Assume that you want to have more information on a particular asset. 4. &n the 8etirement w9o 8evenue screen, select the following asset and select Choose. "ield Asset lant Cost center 'ata /,:/ +/.. +,..

#he system displays the Asset 1alues 'isplay: 'ep. lanned 1alues screen, where it shows the planned values for the asset in the current fiscal year. #he system shows the planned depreciation for the fiscal year, and the planned net !oo$ value at the end of the year. #he asset is a vehicle. Assume that it was recently in an accident, and it will have to !e completely depreciated as a result. 5. Ma$e a note of the net !oo$ value that appears in the Change column. =ater on you will have to write-off this vehicle. #herefore you need the current !oo$ value.

?. &n the Asset 1alue 'isplay: 'ep.

lanned 1alues select Asset master.

#he system displays the general data for the asset. You can see the account determination and the capitali@ation date, along with other data. 0. 8eturn to the 8etirement w9o 8evenue screen. :. Select =ist +.. &n the "ield &utput device rint immed. 'elete after print ++. Select rint. rint.

rint Screen =ist screen, enter the following data: 'ata Your printer name > >

+,. Collect your printout. You can use this list during the closing activities. +/. 8eturn to the SA 89/ System screen.

Unplanned Depreciation: Posting

You called up the asset list and loo$ed at an asset in the first step of this process. #he asset was a vehicle. "or our demo, we will ma$e the assumption that the vehicle was totaled, and therefore has to !e depreciated completely. #herefore you should now carry out the manual depreciation of this vehicle. You need the net !oo$ value that you wrote down in step one. +. Select in the SA "i2ed assets. 89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select %nplanned deprec.

ostings Manual val. correct.

/. &n the %nplanned depreciation: Initial Screen , enter the following data:

"ield Company code Asset #ransaction type 3. Select )nter.

'ata +... /,:/ 54.

4. &n the Create Asset #ransaction: %nplanned depreciation on old asset data, enter the following data: "ield Amount posted #e2t 5. Select )nter. #he dialog !o2 Area ., spec ta2 dep. ?. Select )2ecute. A second dialog !o2 Area: +. (etworth ta2. appears. 0. Select )2ecute. A third dialog !o2 Area: +4 #a2. !al. shr. appears. Select )2ecute. A second dialog !o2 Area: ,. Cost-acc. appears Select )2ecute. A third dialog !o2 Area: /. Aroup ')M appears Select )2ecute A fourth dialog !o2 Area: /+ Aroup %S' appears. In this area, the amount corresponds to the amount posted in %S' at the current rate of e2change. #his amount is used for consolidation in %S'. Select )2ecute. You are !ac$ on the Create Asset #ransaction: %nplanned depreciation on old assets data screen. 'ata (et !oo$ value noted in step one Complete depreciation: 1ehicle totaled

ost the document. 8eturn to the Asset Accounting screen.

Manual Depreciation: Displa

Planned !alues

In this process, you loo$ at the values of the asset and the posting document that was updated in "inancial Accounting when you posted manual depreciation in the previous step. +. Select on the Asset Accounting screen Asset Asset value display. ,. &n the 'isplay Asset 1alues: Initial Screen, enter the following data: "ield Company code Asset 'epreciation area;s< "iscal year /. Select Current !oo$ value. &n the 'isplay Asset 1alues: Current (et 6oo$ 1alues screen, the system displays the net !oo$ value of the vehicle in the current period in the current fiscal year. 3. In order to see the net !oo$ value following the manual depreciation, select simulate depreciation posting several times, until the osted upto field shows the period in which you posted the manual depreciation. #he net !oo$ value is at the end of the year @ero. #he asset is fully depreciated as of this point. 4. 8eturn to the 'isplay Asset 1alues: Initial Screen. 5. Select #ransactions. #he list contains the transactions on the asset up to this point. *hen you enter manual depreciation of the vehicle, the system posts unplanned depreciation on prior-year asset acBuisitions. 'ata +... /,:/ .+ Current fiscal year

At this point, you still cannot display a "inancial Accounting document. #he data is posted initially only in Asset Accounting. #he posting to the general ledger ta$es place when you carry out the depreciation posting run. ?. &n the 'isplay Asset 1alues: Intial screen select )nvironment Asset values. #he Asset 1alues 'isplay : 'ep. lanned 1alues screen shows the current values of the asset under construction. 0. 8eturn to the Asset Accounting screen.

Manual Depreciation: "everse document

lease reverse the asset document you Cust posted. #his will allow other users of the I')S System to carry out manual depreciation using the master data provided. +. &n the Asset Accounting screen select asset document. ostings 8everse document &ther

,. &n the 'ocuments for asset screen, enter the following data: "ield Company code Asset "iscal year /. Select )nter. #he system displays a list of asset documents for this asset. You can identify the manual depreciation document !y its te2t: %nplanned depreciation on old assets data. 3. Mar$ the depreciation document on the &verview of Asset Accounting 'ocuments screen. 4. Select 8everse. 5. &n the resulting dialog !o2, enter the following data: "ield 'ocument type 'ata AA 'ata +... /,:/ +:::

osting date eriod

#odayDs date Current period

It is possi!le that the dialog !o2 doesnDt appear. In this case the document was posted with document type AA. ?. Select )nter. 0. Select Save. #he manual depreciation is now reversed. #he asset has a value again, and another user can practice manual depreciation. :. 8eturn to the SA 89/ System screen.

Settlement from Investment #rder to an Asset under Construction: Posting Costs to an Investment #rder
Assume that the I')S group wants to have a factory !uilding !uilt. A master record already e2ists in Asset Accounting for this o!Cect. It is an asset under construction. Costs are incurred at regular intervals ;preliminary wor$, first !uilding segment, and so on<. In order to collect these costs, we created an investment order. #he system settles the order regularly to the asset under construction. In this step, you enter costs on the investment order. In this e2ample, we will enter an invoice from the city for connecting the water supply. +. Select in the SA Accounts paya!le. ,. &n the Accounts 89/ System screen Accounting "inancial accounting

aya!le screen, select 'ocument entry Invoice

/. &n the )nter 1endor Invoice: -eader 'ata screen, enter the following data: "ield 'ocument date 'ata #odayDs date

'ocument type Company code osting date Currency stEey Account ;vendor< 3. Select )nter.

E8 +... #odayDs date ')M /+ +...

4. &n the )nter 1endor Invoice: Create 1endor Item screen, enter the following data: "ield Amount 'ata +,,...... ;gross amount, including sales ta2< > ;select< 1+ 3. 3+4...

Calculate ta2 #a2 code stEey Account 5. Select )nter.

?. &n the )nter 1endor Invoice: Create A9= account item screen, enter the following data: "ield Amount #a2 code &rder 'ata F default from previous screen 54....,3

0. Select )nter. In the resulting dialog !o2 Information , the system as$s for a Buantity. :. Ignore this message and select )nter. +.. &n the )nter 1endor Invoice: Correct A9= account item screen, select 'ocument overview. ++. #he posting in should appear as follows on the )nter 1endor invoice: 'isplay &verview screen: Credit Account +... ;)urope< or /... ;(orth America< ;paya!les account<

Settlement from Investment #rder to an Asset under Construction: Carr ing #ut Settlement
It is now the end of the period, and we have to settle the costs from the investment order to an asset under construction. #he asset master record for the asset under construction e2ists already in the I')S System. It does not have any values yet. Its num!er is "ield Asset num!er Select in the SA 'ata 3.+. 89/ System screen Accounting Capital Investment

managment Internal orders. &n the Internal &rders screen, select Actual postings Settlement Individual processing. )nter Controlling area +... in the dialog!o2 Set controlling area . Select Continue. &n the Actual Settlement: &rder screen, enter the following data: "ield &rder Settlement period "iscal year 'ata 54....,3 current month ;.>>< current fiscal year eriod-end closing

rocessing type #est run Select )2ecute.

+ 2 ;mar$<

&n the Actual Settlement: 'etailed =ist screen, you see the values that have to !e settled from the order to the asset ;">A<. #he settlement amount is a net amount, that is, without input ta2.

It is possi!le for you to settle only a part of the !alance from the order to the asset. You can then settle the remaining amount to a cost center. You need to define distri!ution rules in order to ma$e this distri!ution. -owever, we will use a simple e2ample. 8eturn to the Actual Settlement: &rder screen. 8emove the #est run indicator. Select )2ecute. #he system displays the detail list of the settlement as it did for the test run. #he investment order is now actually settled to the asset under construction. 'ou!le clic$ on the settlement line on the Actual Settlement: 'etailed =ist screen. &n the Actual Settlement: 8eceiver 'e!it screen, the system displays the de!it to the receiver ;in this case the asset under construction<. #he amount is posted to cost element 0++... ;capitali@ed activity<. Select Accounting documents. #he dialog !o2 =ist of the 'ocuments in Accounting appears. 'ou!le clic$ on Accounting document. #he following posting is shown on the 'isplay 'ocument: &verview : Credit Account 0++... ;revenue from capitali@ation of settled orders< 'e!it Account /,... ;the asset under construction< #his shows how the system offsets the cost from e2ternal procurement ;account 3+4...< with the revenue from capitali@ation of settled orders. ;#he e2ternal

procurement costs were posted in the previous step when you entered the invoice.< 8eturn to the SA 89/ System screen.

Settlement from Investment #rder to an Asset under Construction: !alue Displa for Asset under Construction
In this process you chec$ the values that were updated on the asset under construction in Asset Accounting, and see the posting document in "inancial Accounting. +. Select in the SA "i2ed assets. 89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select Asset Asset value display. /. &n the 'isplay Asset 1alues: Initial Screen enter the following data: "ield Company code Asset 'epreciation areas "iscal year 3. Select #ransactions. &n the &verview of Asset Accounting 'ocuments screen, you see a list of the transactions on the asset. *hen you settled the investment order, an acBuisition was posted to the asset. 4. Select "I document. 'ata +... 3.+. .+ Current fiscal year

"inal Settlement of Asset under Construction: Create Master 8ecord

&nce all the costs for the asset under construction have !een entered, you have to settle this asset to a completed asset. =etDs assume that all the costs for constructing the factory !uilding have !een entered, and that the investment order was settled completely. At the close of the period you have to settle the asset under construction to a completed asset.

In our e2ample we have only posted costs for connecting the water. In reality, we would have had many more costs on the asset under construction. -owever, to $eep the e2ample simple, letDs settle the asset under construction to a completed asset even though only the first settlement of the investment order has !een posted. 6efore you can carry out settlement, you have to create a master record for the completed asset. In this process, you create an asset master record for the factory !uilding that was constructed. #he master record should !e in asset class ++.. ;6uildings<. +. Select on the Asset Accounting screen Asset Create Asset. ,. &n the Create Asset: Initial Screen screen enter the following data: "ield Asset class Company code Asset ;reference< Company code ;Asset< /. Select )nter. 3. &n the Create Asset: Master 'ata screen, enter the following data: "ield 'escription Capitali@ed on 4. Select )nter. 5. &n the Create Asset: Master data screen select #he ta! page #ime-dependent, enter the following data: "ield 'ata 'ata South factory !uilding, "ran$furt leave !lan$ 'ata ++.. +... ++.. +...

6usiness area Cost center lant

,... /+4. +/..

?. Select Save. Ma$e a note of the asset num!er. #he asset does not yet have any values, and is not yet capitali@ed. 0. 8eturn to the SA 89/ System screen.

$inal Settlement of the Asset under Construction: Specif ing Distri%ution "ules
In this procedure, you specify how the values from the asset under construction should !e distri!uted to completed assets. In our e2ample, this is very simple, since the asset under construction is transferred completely to one completed fi2ed asset. Select in the SA 89/ System screen Accounting Capital investment

managment Internal orders. &n the Internal &rders screen, select Actual postings Settlement Capital investment order: =ine items. &n the 'istri!ute =ine Items for Capital Investment &rder: Inital Screen screen, enter the following data: "ield &rder Select )2ecute. #he list contains the line items that you posted to the investment order. In this e2ample there is only one line item. Mar$ this line item. &n the 'istri!ute =ine Items for Capital Investment &rder screen, select )dit "inal settlement )nter final settlement #he system displays the list for the settlement rules. &n the Maintain Settlement 8ule: &verview screen, enter the following data: 'ata 54....,3 eriod-end closing

"ield Cat Settlement receiver ercent

'ata ">A Your asset num!er +..

#his means that the full amount of the e2penditures posted to the asset under construction will !e settled to the completed asset. 8eturn to the 'istri!ute =ine Items for Capital Investment &rder screen. Select Save settlement rule. 8eturn to the Internal &rders screen.

$inal Settlement of the Asset under Construction: Carr ing #ut Settlement
&nce you have defined the distri!ution rule, you can carry out the settlement of the asset under construction. +. Select on the Internal &rders screen Actual postings Settlement Individual processing. ,. &n the Actual Settlement: &rder screen, enter the following data: "ield &rder num!er Settlement period "iscal year rocessing type #est run /. Select )2ecute. 3. &n the Actual Settlement: 'etailed =ist screen, you see the values that should !e settled from the order to the completed fi2ed asset ;">A<. 'ata 54....,3 Current month ;.>>< Current fiscal year / 2 ;mar$< eriod-end closing

#he settlement amount is a net amount, that is, without input ta2.

It is possi!le for you to settle only a part of the !alance from the order to the asset. You can then settle the remaining amount to a cost center. You need to define distri!ution rules in order to ma$e this distri!ution. -owever, we will use a simple e2ample. 4. 8eturn to the Actual Settlement: &rder screen. 5. 8emove the #est run indicator. Ma$e sure that the processing type is /. ?. Select )2ecute. #he system displays the detail list of the settlement as it did for the test run. #he investment order is now actually settled to the completed asset. 0. 'ou!le clic$ on the settlement line on the Actual Settlement: 'etailed =ist screen. &n the Actual Settlement: 8eceiver 'e!it screen, the system displays the de!it to the receiver ;in this case the completed asset<. #he amount is posted to cost element 0++... ;capitali@ed activity<. :. Select Accounting documents. #he dialog !o2 =ist of 'ocuments in Accounting appears. +.. 'ou!le clic$ on Accounting document. #he following posting is shown on the 'isplay 'ocument: &verview : 'e!it Account +... ;description ........>>>>, where >>>> represents the num!er of the completed asset< Credit Account /,... ;description ........3.+., where 3.+. represents the num!erof the asset under construction< #his shows how the system transferred the values of the asset under construction to the completed asset. ++. 8eturn to the SA 89/ System screen.

$inal Settlement of the Asset under Construction: Asset !alue Displa

In this process you can verify the values updated on the asset in Asset Accounting, and also see the "inancial Accounting posting document.

+. Select in the SA "i2ed assets.

89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select Asset Asset value display. /. &n the 'isplay Asset 1alues: Initial Screen enter the following data: "ield Company code Asset 'epreciation areas "iscal year 3. Select #ransactions. #he list on the &verview of Asset Accounting 'ocuments screen contains the transactions on the asset up to this point. *hen the investment order was settled, an acBuisition was posted to the asset. 4. 8eturn to the 'isplay Asset 1alues: Initial Screen and select )nvironment )valuation #ransactions roof of origin. 'ata +... Your asset num!er .+ Current fiscal year

#he list on the =ist of &rigins of Asset Charges screen shows the date the asset was capitali@ed, and the amount of the acBuisition to the asset. #he system also displays the capitali@ation document. It is a settlement document. 5. 'ou!le clic$ on the capitali@ation document. &n the 'isplay 'ocument: &verview screen, you see an overview of the "inancial Accounting document that shows the transfer from the asset under construction to the completed asset. ?. 8eturn to the SA 89/ System screen.

Periodic Depreciation: Carr ing #ut the Depreciation "un

In this process, you run the report for periodic depreciation. *hen you do this, the depreciation is posted only in Asset Accounting at first. #he general ledger is updated when you carry out the ne2t processing step.

*e have not conducted a depreciation run in +::: so that you can carry out this step yourself. You can only carry out this process once in each month. You can e2ecute the depreciation run +, times. -owever, if you plan to carry out this process several times, we recommend e2ecuting the depreciation run in test mode. +. Select in the SA "i2ed assets. 89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select run )2ecute. /. &n the 'epreciation "ield Company code "iscal year osting period lanned posting run =ist assets #est run 3. Select )2ecute.

eriodic processing 'epreciation

osting 8un screen, enter the following data: 'ata +... Current year , 2 ;select< 2 ;select< 2 ;select<

4. #he system informs you that the system is limited to +... assets online. Confirm with Yes, since there are less than +... assets in our I')S company code.

If another user already carried out this process, you will receive a message telling you the ne2t period that can !e posted. Confirm the message with )nter. Change your entry for the posting period to that period.

5. &n the 'epreciation osting 8un for company code +... screen, the program log should tell you that the test run was successfully completed. #he list is organi@ed according to account groups and !usiness areas. It displays planned depreciation, posted depreciation and depreciation to !e posted, in separate columns for each asset. ?. 8eturn to the 'epreciation osting 8un screen.

0. )nter the same parameters as in step /. -owever, remove the #est run option.

If it seems li$ely that other users will also want to carry out the depreciation run, we recommend that you do not carry out a production run. :. Select rogram )2ecute in !ac$ground. rint arameters appears.

#he dialog !o2 6ac$round

+.. )nter the following data: "ield &utput device (ew spool reBuest ++. Select Save. +,. If necessary, confirm the format !y selecting )nter. #he dialog !o2 Start time appears ,select Immediate and save. #he system issues a message saying that the !ac$ground Co! was scheduled for the 8A6%C-.. program. +/. &n the 'epreciation osting 8un screen, select System Services Go!s Go! overview, in order to see when your Co! will !e finished. +3. Select )nter on the Select 6ac$ground Go!s . You receive an overview of the Co!s running under your name today. (ormally you will only see the Co! for the depreciation run. #he status is either released, active or finished. You can only ma$e postings once the Co! is finished. 'ata Your printer name 2 ;select<

+4. &n the Go! &verview: Alpha!etic screen, select 8efresh once in awhile to change the status.

#he Co! could run for several hours, depending on how much data has to !e processed, and how !usy the system is. #herefore, you might want to interrupt the process here for awhile until the Co! has run. +5. 8eturn to the SA 89/ System screen.

eriodic 'epreciation:

rocessing the 'ocument Session

After the Co! has !een e2ecuted, depreciation is posted in Asset Accounting. In addition, the system created a !atch input session. In this process, you will process this !atch input session, there!y updating the general ledger with the data in the depreciation documents. Select , to see further information on this process. 89/ System screen System Services 6atch input )dit.

+. Select in the SA

,. &n the 6atch Input: Initial Screen select &verview. Choose your !atch input session, which you find under your name and the session name 8A6%C-. /. lace the cursor on your session, and select rocess session.

3. #he dialog !o2 rocess Session 8A68%C- appears. Mar$ the run mode 'isplay errors only and the additional functions )2pert mode and 'ynpro standard si@e.

If an error occurs, the update stops where the error occurred. If this occurs, using the e2pert mode will allow you to correct errors directly on the screen. If you have not selected e2pert mode, you have to stop updating the !atch input session when errors appear. 4. Select rocess.

#he system now automatically posts collective documents to the general ledger in the !ac$ground. 5. If an error occurs, loo$ at the status line at the !ottom of the screen to see what type of error it is.

A possi!le error might !e: HCost center +... 9 3,.. !elongs to !usiness area /... rather than +...D. #his means that cost center 3,.. in company code +... is assigned to !usiness area /.... -owever, the posting should !e made to !usiness area +..., according to the proposal. #his is not possi!le. You have to change the entry. ?. In this case, you should enter the correct $ey in the !usiness area field. 0. Select )nter. #he system resumes the updating of the !atch input session. :. #he system informs you when the updating of the !atch input session is finished. +.. 8eturn to the SA 89/ Systems screen.

Demo Information & '

A !atch input session is a collection of a series of transactions that were provided with user data !y a program. #hese transactions that were provided with data are stored as a stac$ in a !atch input session. #his session can !e processed later online. #he system ma$es changes to the data!ase only when the !atch input session is processed. In our e2ample, this means that the transaction figures are updated in "inancial Accounting. #his procedure ma$es it possi!le to enter large amounts of data in the SA System in a short amount of time. 89/

Periodic Depreciation: !erification of Postings in the (eneral Ledger

&nce you have processed the !atch input session, depreciation is now posted: planned depreciation is posted to the general ledger, and cost-accounting depreciation is posted to cost accounting. In this process, we verify which documents were updated in the general ledger. +. Select in the SA Aeneral ledger. 89/ System screen Accounting "inancial accounting

,. &n the Aeneral =edger screen, select Account 'isplay line items. /. &n the 'isplay A9= Account =ine Items: Initial Screen screen enter the following data:

"ield A9= account Company code &pen items 3. Select Selection criteria....

'ata ,+++.. +... 2 ;select<

#he dialog !o2 Selection Criteria: "ield =ist appears. 4. Mar$ 'ocument date. 5. Select )nter. A second dialog !o2 Select Criteria: 1alues appears. ?. )nter the following data:

"ield 'ocument date

'ata =ast day of the period in which you posted depreciation

0. Select )nter. You return to the 'isplay A9= Account =ine Items: Initial Screen screen. :. Select )nter. You see a list of the documents that were updated to the general ledger when the !atch input session was processed.

You can clearly see how important it is to process the posting session created !y the depreciation posting program. If you do not process it, you will have large differences !etween the general ledger and asset accounting that will !ecome apparent, at the latest, at your fiscal year-end. Correcting these differences can !e very time-consuming. +.. 'ou!le clic$ on one of the documents.

You will see the depreciation line item on the 'isplay 'ocument: =ine Item >>> screen. ++. Select 'ocument overview. #he posting shown in the 'isplay 'ocument: &verview screen is: 'e!it Account >>>>> ;Accumulated depreciation< Credit Account ,+++.. ;Asset depreciation< +,. 'ou!le clic$ on the first line item in the document. #here is an asteris$ in the Asset field: depreciation was posted for all assets that !elong to the same asset class and are assigned to the same cost center and !usiness area. +/. 8eturn to the SA 89/ System screen.

Periodic Depreciation: !erification in Cost Accounting

In this process you call up a report on all cost centers for cost element 30+... ;cost-accounting depreciation< and analy@e which documents were updated in cost accounting. +. Select Accounting Controlling Cost centers. ,. &n the Cost Center Accounting screen, select Information system 8eport selection. /. Select =ine items in the application tree. 3. Mar$ Cost Centers: Actual =ine Items and select )2ecute. 4. &n the 'isplay Actual Cost =ine Items for Cost Centers: Initial Screen screen, enter the following data: "ield Cost center group Cost element osting date 'ata -+ 30+... "rom the first to the last day of the

period in which you posted depreciation. ;#he date of our e2ample is ,0..,.+::0< 'isplay variant 5. Select )2ecute. You see the list on the 'isplay Actual Cost =ine Items for Cost Centers screen. #he list is sorted !y cost centers and shows the amounts posted to cost element 30+... ;cost-accounting depreciation<. ?. 'ou!le clic$ on one of the totals records. #he system displays the line items for the selected cost group. 0. 'ou!le clic$ on one of the line items. You see an overview of the document that was updated in financial accounting. #he posting shown on the 'isplay 'ocument: &verview is as follows: Credit ,5+... Clearing of cost-accounting depreciation 'e!it 30+... Cost-accounting depreciation :. 8eturn to the SA 89/ System screen. +SA

Periodic Depreciation: !erification in Asset Accounting

In this process you verify the net !oo$ value of an asset in Asset Accounting after the depreciation run has !een e2ecuted. +. Select in the SA "i2ed assets. 89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select Asset Asset value display. /. &n the 'isplay Asset 1alues: Initial Screen, enter the following data: "ield 'ata

Company code Asset 'epreciation area;s< "iscal year #he e2ample asset is a factory !uilding. 3. Select Current !oo$ values.

+... ++,3 .+ Current fiscal year

#he ta!le shows the acBuisition value of the asset. In the field &rdinary depreciation posted it shows the depreciation posted up to this point. In the osted to field ;on the upper right of the screen< you see up to ;and including< which period depreciation was posted. 4. 8eturn to the SA 89/ System screen.

Inventor : Setting Up and Printing the Inventor

List

In this process you create an inventory list for physical inventory. #he list is !ased on plant and cost center. In a real-life situation practice, you would then distri!ute this list to the persons who are conducting the actual physical inventory. +. Select in the SA "i2ed assets. 89/ System screen Accounting "inancial accounting

,. &n the Asset Accounting screen, select Info system 8eport selection. /. &n the Application #ree 8eport Selection Assets Management screen, select the following in the report tree: Asset portfolio Inventory lists Inventory list. 3. Mar$.... !y cost center and select )2ecute. 4. &n the Inventory =ist screen, select Aet variant. #he dialog !o2 A6A : 1ariant 'irectory of appears. rogramm AIJJ9SA I%)8Y9AM.+

5. Mar$ the variant SA K*)8E ;Inventory !y plant< and select Choose. ?. &n the Inventory =ist screen, enter the following data:

"ield Company code 8eport date 'epreciation area 0. Select )2ecute.

'ata +... 'ec. /+ of the current fiscal year .+

#he list contains all assets that have the inventory indicator set in their master records. #he assets are sorted according to the plant and the cost center they !elong to. :. Select =ist rint.

+.. )nter the name of your printer in the dialog !o2. Mar$ rint immed. rint. Aet your printout from the printer. 89/ System screen.

++. Select

+,. 8eturn to the SA Inventory:

rinting Inventory =a!els with 6arcodes

After you have carried out the inventory using the inventory list, you will usually find you need to ma$e some adCustments. "or e2ample, an asset may !elong to a different cost center, or you may need to carry out manual depreciation due to the loss of an asset or damage to an asset. In this e2ample, we assume that no adCustments were necessary. (ow you can proceed to la!el the fi2ed assets with !arcode la!els. +. Select in the SA "i2ed assets. 89/ System screen Accounting L "inancial Accounting L

,. &n the Asset Accounting screen, select Info system L 8eport selection. /. In the Application #ree 8eport Selection Assets Management screen, select the following in the report tree: Asset portfolio L Inventory lists L rint !arcode. 3. Mar$ SA : Standard variant and select )2ecute. 4. &n the 6arcodes screen, enter the following data: "ield 'ata

Company code Asset class lant Sort version 'ate created "orm name for printing !arcode 5. Select )2ecute.

+... ,... +... ..., leave !lan$ "IAA7.../

You receive a list of the fi2ed assets in the plant you selected. You see their asset num!er, date they were created, and a description. ?. Select rint !arcodes. rint appears.

#he dialog !o2

0. )nter the name of your printer. Select rint immediately. rint preview.

:. Select

#he la!els and their !arcodes are displayed. +.. &n the rint preview for.... screen, select Aoto L =ist display.

#he system displays the content of the la!els. ++. Select rint.

#he la!els will !e printed without !arcodes if your printer does not have the correct settings. "or information on setting your printer correctly for !arcodes, see note 4+:5. +,. 8eturn to the SA 89/ System screen.

$iscal )ear Change

#he main purpose of the fiscal year change is a technical one. It opens a new year segment for fi2ed assets. It calculates depreciation and replacement values for the new year. It carries forward cumulative acBuisition values and depreciation. Since it calculates depreciation for all fi2ed assets, the program also indicates assets that could have incorrect depreciation. Select , to see further information on this process. 89/ System screen Accounting "inancial accounting

+. Select in the SA "i2ed assets.

,. &n the Asset Accounting screen, select change.

eriodic processing "iscal year

/. &n the Asset fiscal year change screen, enter the following data: "ield Company code (ew fiscal year #est run 3. Select )2ecute. You receive a message saying that a ma2imum of +... assets can !e processed online. Select Yes. You now receive a log that contains information a!out the significance of the year end closing program. lease read this information carefully. 'ata +... ne2t fiscal year 2 ;select<

In order to allow other users to also test this e2ample, we recommend that you only carry out a test run. 4. 8eturn to the SA 89/ System screen.

Demo Information - ,
You should run this program close to the time of your actual fiscal year change. "or e2ample, if your new fiscal year !egins on &cto!er +, you should run this program appro2imately !etween Septem!er

,4 and &cto!er 4. At the same time, you should initiate the carry forward of !alances for the "I general ledger accounts

)ear&*nd Closing
From a technical viewpoint, the main role of the year-end closing in FI-AA is to block the values from prior years to further depreciation calculation. From an accounting viewpoint, this function is needed in order to guarantee that asset values that were included in the balance sheet are not subsequently changed. Carrying out the yearend closing, therefore, is absolutely necessary for the consistence of accounts. elect , to see further information on this process.

!efore you carry out the year-end closing, you must have already completed the following" #. Ad$ustment postings related to year-end closing preparations %. If needed, depreciation simulation and corrections to depreciation records for acquisitions in the year being closed &. 'epreciation posting for the last period of the year being closed (. Fiscal year change In our e)ample, however, you have not made any ad$ustment postings, and it is possible that all depreciation was not posted up to the end of the year. *he following process should therefore only to be seen as an illustration of the year-end closing. +ou carry it out in test mode. #. elect in the SAP R/3 System screen Accounting , "inancial accounting , "i2ed assets. %. -n the Asset Accounting screen, select eriodic processing , Year-end closing , )2ecute. &. -n the Year-end closing Asset Accounting screen, enter the following data" Field Company code Fiscal year Data #... #///

*est run (. elect )2ecute.

) 0select1

A dialog bo) appears. elect Yes to continue. +ou receive a log for the test run. *he year-end closing was not carried out. 2o errors were found.

In a production system, it is possible that errors might be found, for instance, because master data is not complete, or depreciation was not completely posted. If this is the case, you have to correct these errors before you carry out the test run again.

If you really want to close the fiscal year, you have to carry out the process without selecting test mode. 3owever, once you do this, it is no longer possible to post in Asset Accounting in the old fiscal year. 4. 5eturn to the SAP R/3 System screen. 6nd of the process chain

Demo Information - 3
For purposes of organi7ation, please note that the year-end closing in Asset Accounting should always be carried out in parallel with the year-end closing for the general ledger. +ou should carry out the year-end closing for assets before you close the general ledger accounts to posting for the previous year. 8ust !6F-56 you run the year-end closing program, you have to run another depreciation posting run for the last posting period in the fiscal year being closed. +ou might have posted transactions to the fiscal year being closed during your preparations for closing. 5unning another depreciation posting run is the only way to guarantee that the depreciation for these transactions is posted correctly to the general ledger.

Define Depreciation Areas

In this step, you define your depreciation areas. You can change the definition of depreciation areas adopted from the standard chart of depreciation, and you can add new depreciation areas if needed.

For parallel financial reporting (that is, valuation based on different accounting principles) you can define real depreciation areas and derived depreciation areas. The values in the derived depreciation area are calculated from the values of two or more real areas, using a formula you define. The system does not store the values from the derived depreciation area. Instead they are determined dynamically at the time of a request. therwise you can use the same system functions for derived depreciation areas as real depreciation areas. !ost important, they can be evaluated in the same way, and posted to the general ledger (for e"ample, for showing special reserves). Requirements You have added at least one chart of depreciation of your own in the Copy Reference Chart of Depreciation/Depreciation Areas I!# activity. Standard settings The country$specific charts of depreciation (such as 0US for the %nited &tates, 0DE for #ermany) contain standard charts of depreciation, for e"ample for'

(oo) depreciation Ta" depreciation *ost$accounting depreciation &pecial reserves Investment support

These standard depreciation areas provide a reference. From the point of view of &+,, this reference meets all requirements for accounting and legal considerations. You always have to copy one of the standard depreciation areas in order to create a new depreciation area. Therefore, you should delete standard depreciation areas only after careful consideration. It is usually better to avoid deleting them, and instead set unneeded standard depreciation areas to inactive in the asset class (in the Determine Depreciation Areas in the Asset Class I!# activity). Activities -. *hec) the definition of the depreciation areas that were created by reference to a standard chart of depreciation (in the detail screen). .. If necessary, define new depreciation areas by copying an already e"isting depreciation area. /. &pecify the characteristics of your depreciation area in the detail screen' Procedure for Setting Up Online Posting and Periodic Posting Management of Values #roup (o"' a) &pecify the type of value management that is allowed for the different types of valuation (such as, acquisition and production costs (+,*), depreciation, interest). You must allow +,* and positive net boo) values in all areas in which you want to depreciate capitali0ed asset values (the usual case). +llow negative net boo) values in depreciation areas that depreciate below 0ero, and in areas for managing value ad1ustments posted on the liabilities side (special reserves). The second of these also are not allowed to manage +,* or positive net boo) values. Define Depreciation Areas #roup (o"' b) &pecify if the +,* values2depreciation of the area should be posted (+,* values' online2periodic2direct). The system can only automatically post asset balance sheet values from one depreciation area online (with the e"ception of retirement transactions). #enerally, this area is the boo) depreciation area. ther areas (for special reserves or cost accounting depreciation) can be posted

automatically to the general ledger using bac)ground processing (application menu' Periodic Processing), when the Post to G/ Account indicator is set). 3epreciation can only be posted during periodic processing. There is also direct posting, a different approach than automatic online posting to the general ledger. 4ith this approach, the values are also posted relatively quic)ly, as with online posting. +ny documents that could not be updated in direct mode due to technical problems have to be posted at a later date during periodic posting (in the application menu' Periodic Processing). +lso )eep in mind that direct posting considerably increases the document volume as compared to periodic posting, which creates collective documents. You can choose either a new account set in the general ledger or a parallel general ledger as the target for posting. If you choose a parallel general ledger, then you can post using the account set of a different depreciation area if you enter that differenent depreciation area here. (%sually you choose the master depreciation area here.) In the Assign G/ Accounts I!# activity, you can enter all reconciliation accounts and offsetting accounts for reconciliation for all depreciation areas that post to the general ledger. Entries for Derived Depreciation Area #roup (o"' c) If you need depreciation areas that derive their values from other depreciation areas, you can define derived depreciation areas (for e"ample, for special reserves). For this purpose, enter the depreciation areas that are to form the basis for its values. 5nter whether the values from these areas should be included as positive or negative values in the formula. !a)e sure that the Real Depreciation Area indicator is not set. The effect of setting the Derived Depreciation Area as Real Area indicator is that +,* differences are posted in this depreciation area, rather than the special reserves procedure being used. !a)e sure that, in this case, you enter the asset balance sheet accounts for the depreciation area, rather than the special reserves accounts. + derived depreciation area can be for reporting only (that is, its values are not posted). In this case, you can specify that the system does not perform a value chec) for this derived area (indicator' Area for reporting purposes only). 6. In the Specify area type action, chec) the standard classification of the depreciation areas. The depreciation areas in the standard chart of depreciation all have a type. 4hen you create a chart of depreciation, the system ta)es over these types from the referenced standard chart of depreciation. For e"ample, the type of depreciation area 7- is Valuation for trade balance sheet. The area type is especially important in the following case' If you are also using the Investment !anagement (I!) component, the depreciation area with type 78 (cost accounting valuation) has special importance. +t the present time, you cannot transfer capitali0ation differences as nonoperating e"pense to this depreciation area. This limitation is required in order to ma)e sure that all non$capitali0ed debits on a capital investment measure are accounted for in *ontrolling. Procedure for Setting Up Direct Posting To set up direct posting (single posting) in a periodically posting depreciation area, follow this procedure' 6. !a)e all settings for the depreciation area as described above. In the Posting in !" field (automatic posting indicator), enter # $Area Posts AP% and Depreciation on Periodic &asis' or ( $Area Posts AP% )nly'. 9. &tart the periodic posting run for +,* values, :+,5:(.777 (transaction AS!"#), in test mode for a few posted assets. 3uring this test run, the system performs all chec)s that it would also perform in update mode or during direct posting. +naly0e the log and correct any errors that occurred. ;. nce the test run was completed successfully, then activate direct posting for the depreciation area. In the Posting in !" field (automatic posting indicator), enter * $Area Posts AP% )nly' or + $Area Posts )nly AP% Directly'. 8. !a)e several test postings. If errors still occur, these are recorded in the application log. You can navigate to these entries using transaction ARA . In the )b,ect field, enter $%AA and in the Subob,ect field enter &&' and run the report. In the posting run for +,* values, :+,5:(.777, you can chec) in the log at any time to see which line items were posted successfully in direct posting mode. #otes on Deleting a Depreciation Area You can also delete depreciation areas. The area you want to delete must meet the following requirements'

It cannot be the master depreciation area (7-). The area cannot be a reference area for another area (for +,* values or depreciation terms). The area cannot be used in the calculation formula for a derived depreciation area. In this case, you need to change the calculation formula for the derived depreciation area. The area cannot be defined for automatic posting of +,* values to the general ledger. If the depreciation area is one used for investment support, then you first have to delete all investment support )eys that reference this depreciation area.

The system then deletes the selected depreciation area in the chart of depreciation and in the valuation specifications for all affected assets and asset classes.