Fixed Assets

Asset Accounting
AA Overview Asset Accounting as a Sub-ledger Asset Class Chart of Depreciation Master Data
Create/Change Asset Master Record

Acquisitions
Settlement of an Asset Under Construction (AUC)

Retirement Depreciation

Asset Accounting
Transfers Period / Year End Closing Reporting

Overview: Asset Accounting as a Sub-Ledger
Asset Accounting is a subsidiary ledger of Financial Accounting. The appropriate General Ledger accounts are updated each time you post. General Ledger
Assets 1000 Liabilities 1000

Asset account 1000

Vendor 1000

Overview: Asset Classes The asset class is used to: sub-classify the General ledger accounts and group master records by specific criteria. .

Asset Class Balance sheet A L General ledger accounts Buildings Vehicles Assets under construction Fixtures and fittings Asset classes Asset master records .

Asset Classes Asset Classes Configured  910000  910001  910002  910003  910004 Land Building Plant and Machinery Vehicles Asset under construction .

. assets .. sheet items Assets Create asset Asset portfolio Liabilities 02200000 Assets Real estate 1 Machinery . .Functions of the Asset Class Asset Class Account allocation Screen layout Number assignment Special features Default values Selection features Asset class Acct.... Lathe 02115000 Drill press . determination Bal. Finance.. Fixtures+fit.

The asset class is the most important criteria for structuring fixed assets from an accounting point of view.Functions of the Asset Class The asset class contains default values and control elements which are passed on to the individual assets when you open a new asset master record. By entering useful default values. The asset class is used to assign the assets (and their business transactions) to the correct general ledger accounts. You also ensure that the records in a given class are handled uniformly. you reduce time and effort needed for creating new asset master records. The most important tasks of the asset classes are: The assignment of default values when creating assets (particularly depreciation terms) The grouping of assets for reporting purposes . Every asset has to be assigned to exactly one asset class.

Definition of the Asset Classes Asset classes Client level Master data section Account allocation Screen layout rule Number range Default values Chart of depreciation level Section for valuation data Selection of depreciation areas Default values .

.. Group LINR str.-line ACRS . _ _ 8/00 _ _ 8/00 _ _ . LINB str......-line _ 8/00 12/00 Group . . LINR str.. . 3X 10/00 _ _ Machines Germany USA Tax dep. SNFG invest.Asset Classes in the Chart of Depreciation 1 Class Chart of depreciation Areas Depreciation key Proposed useful life Minimum useful life Maximum useful life Book dep.. support 10/00 _ _ .. DG30 decl-bal.-line Book dep.. ......

therefore a class may have multiple Charts of Depreciation relevant to it. therefore.Points from the Asset Class / Dep’n Slide The Chart of Depreciation is assigned to company code. so that all assets in this class will be treated differently in each country. The asset classes are valid across company codes. The catalog of asset classes. This is true. even if the company codes use different charts of depreciation. and therefore different depreciation areas You can assign different charts of depreciation to an asset class. applies uniformly to all company codes. .

key 0000 0000 LINA depreciation is not calculated in depreciation areas intended for the balance sheet negative values allowed . Cost-acc. Tax dep. Extras Transaction type groups 15 16 Down payment Down payment carried forward from previous years AuC status    AuC managed as total line item settlement capital investment measure depreciation areas Book dep.Special Asset Class: AuC Class: Assets u. const. deprec.

There is no connection to the original asset under construction in the capitalized asset. You have to enter the amount of the transfer manually. . you can only transfer either prior-year acquisitions or current-year acquisitions in one given posting transaction). As a result: Only complete transfers or simple partial transfers are possible (in other words. You can only transfer to one target asset per posting transaction. there is no exact proof of origin for the original postings. Therefore.AUC without line item settlement Assets under construction in this asset class are managed without the option of line-item final settlement to receiver assets or cost centers.

As a result: On the capitalized asset. AUC’s can be settled to multiple final assets / asset classes .Assets under Construction with Line item settlement Assets under construction in this asset class are managed with the option for final line item settlement to receiving assets or cost centers.you can accurately identify the origin of the postings. you can then see the relationship between the capitalized asset and original postings to the asset under construction .

. The assets in this class can not then be directly created and posted in Asset Accounting.Assets under Construction from Investment measure Assets under construction in this asset class to be created solely for capital investment measures (internal orders or projects). to which they are assigned. The assets can only be processed by means of an order or WBS element.

There are three asset classes for Assets Under Construction configured. Assets under construction have to be shown separately in the balance sheet. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet. The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective.AUC Asset Class: Points from previous slide Assets under construction require their own asset class. These are: Asset under Construction Asset under Construction with Line item settlement Asset under Construction from Investment measure .

These are: Asset under Construction Asset under Construction with Line item settlement Asset under Construction from Investment measure .AUC Asset Class: Points from previous slide Assets under construction require their own asset class. The component IM (Investment Management) is available for managing more extensive asset investments from a controlling-oriented perspective. Assets under construction have to be shown separately in the balance sheet. There are three asset classes for Assets Under Construction configured. Choosing the depreciation key ‘0000’ ensures that depreciation is not calculated for the asset under construction in depreciation areas that are posted to the balance sheet.

for book depreciation.Overview: Depreciation Areas You will generally need values for fixed assets for various business and legal purposes (for example. . it is therefore possible to manage values in parallel in as many depreciation areas as you want. In the R/3 FI-AA system. cost-accounting depreciation and so on).

. Company codes in Financial Accounting are assigned to a chart of depreciation – refer following slide. Depreciation Charts: Z910: 01: 02: 31 Chart of Depreciation: A Ltd Depreciation Areas: Local reporting Y1 Parent reporting Y2 Consolidated balance sheet in group currency 32 Book depreciation group currency (profit center) There is no set relationship defined in the system between the chart of accounts and chart of depreciation.Depreciation Charts/Areas in A Ltd.

Asset Accounting Company Code Chart of accounts Chart of depreciation Financial Accounting Company Code + Data for Asset Accounting Asset Accounting Company Code = .

Master Data .

Creating the Asset Master Record Create asset using asset class using a reference taking over the default values from the asset class 'copying' an existing asset .

. 01/12/YY 08/28/YY 12/01/YY . . . . . . . to to to . from from from . 08/27/YY 11/30/YY 03/14/YY . .Time-dependent data New Interval Enter period under consideration Valid from MMDDYYYY Valid to MMDDYYYY Cost center A Cost center B Cost center C .Time-Dependent Data ASSET MASTER RECORD . . . .

you have two options: Use the asset class. project). to which the asset will belong. order. This is of particular significance for cost accounting assignments (for example.Master Data Creation/Change: Key Points When you create the asset master record. to provide default values. Use an existing asset as a reference for creating the new asset master record. The asset class then supplies the most important control parameters in the asset master record. cost center. . Some information in the asset master record can be managed as timedependent data.

Acquisitions .

Integration Assets Fixed Asset 100 Accounts Payable Vendor 100 100 Acquisition purchase 110 Acquisition inhouse production Aqcuisition with Vendor  Asset transaction integrated with Accounts Receivable or Accounts Payable (Only for direct Asset purchases) No PO Assets Fixed Asset 100 General Ledger Clg Acct 100 Aqcuisition with Auto-offsetting Entry  Asset transaction posted using clearing account (not integrated) (Only for direct Asset purchases) Aqcuisition with MM-PO  Asset transaction posted MM from Materials Management (MM) Assets Fixed Asset 100 Accounts Payable Vendor 100 .Asset Acquisition .

Asset Acquisition – MM Integration Purchase Requisition Create Master Record With assignment to WBS Purchase Order Goods Receipt Valuated Non-Valuated Building required Goods Receipt or Assignment of WBS Internal Orders To manage budget expenditure Invoice Receipt .

Retirement .

Retirement Assets can be retired: With Revenue Without Revenue (scrapped) .

net book value or other settlement price 2. Retirement with revenue .Asset Retirement: Types Types of asset retirement 1.selling of an asset either at a market price. Retirement without revenue writing off an asset which is no longer productive or has no residual value .

Revenue 4000 + 400 sales tax 210 Retirement sale 200 Retirement scrapping A/R posting Customer 4000 4400 P+L or FinStmt Notes Revenue Asset Retirmt 4000 Assets posting Asset Clearing of Asset Retirmt P+L Loss 1300 1 3 6000 700 6000 2 4 4000 1 APC 2 Amount retired 3 Proportional value adjustment 4 Clearing of retirement .Acquis .Complete retirement of APC on 03/15/20xx .Asset Retirement w/ Customer : Accounts Retirement: .1. date 01/01/20xx . APC = 6000 .

Depreciation .

Special Depreciation: depreciation that is solely based on tax regulations. such as damage to the asset. that lead to a permanent reduction in its value.Depreciation SAP supports the following direct types of depreciation: Ordinary Depreciation: planned reduction in asset value due to normal wear and tear. Unplanned Depreciation: depreciation resulting from unusual circumstances. .

You make this specification in the asset classes. . The system allows you to define an almost indefinite number of depreciation areas. You define the required depreciation keys per chart of depreciation.Depreciation Key The depreciation areas are identified in the system by a two-character numeric key. and can define it directly in the given asset master record. This feature enables you to handle a large number of different types of valuation in parallel.

Elements of the Depreciation Calculation Depreciation is calculated according to the depreciation key in the asset master. The depreciation calculation method is the most important feature of the internal calculation key. The depreciation key. . It is used to carry out the different types of depreciation calculation. The most important influences on the calculation of depreciation are: The value date of the document. It is used to set the depreciation start date in the asset.

Transfers .

Transfers Assets can be transferred within a company code or across companies within the Group Assets can be transferred in full or partially. Controlling object assignment can be changed as can asset class. .

From one company to another . Transfer within same Company Code Eg. From one asset class to another Intercompnay Transfer (ABT1N) 2.Asset Transfers 2 1 Asset transfers can be one of the following scenarios: Transfer within Company Code (ABUMN) 1. Inter-company transfers between companies in SAP Eg.

Period End Closing .

.Check: Can the year-end closing be carried out? .Asset list -.Asset history sheet .. Year-end closing program per Periodic processing Fiscal year change 3. Net book value Year-end closing 1. Asset values at fiscal year start Transaction 10000 APC 10000 Ordinary dep. Closing reports .Fiscal Year Change/Year-End Closing 31 Fiscal Year Change Year-end closing 31 Fiscal Year Change Fiscal Year Change Asset values Transaction APC Ordinary dep. Depreciation posting run . 3000 Net book value 7000 Year 2 0 10000 2100 4900 .Maintenance of the last closed fiscal year company code at fiscal year start 0 0 0 0 Year 1 10000 10000 3000 7000 2.

 If the program finds no errors.Points from Fiscal Year Change/Year-End Closing  The fiscal year change program opens new annual value fields for each asset.  SAP provides you with a check report for year-end closing. it updates the last closed fiscal year for each depreciation area.  You have to run the fiscal year change program for your whole company code.  The earliest you can start this program is in the last posting period of the old year. whether errors exist for any assets. whether depreciation was fully posted. It checks whether the fiscal year change was completed for all assets. .

Summary of the main reports .Asset Reports …..

82: Physical Inventory Lists A series of query programs based on different selection criteria. S_ALR_87012075: Asset history Complete detailed history of each asset. S_ALR_87012026: Depreciation Current Year Depreciation analysis by asset. . S_ALR_87011979 .Standard Fixed Asset Reports Standard reports are available via the standard SAP menu: “Fixed Assets / Information System / Reports on Asset Accounting” Key reports: S_ALR_87011963 .70: Asset Balances A series of query programs based on different selection criteria. S_ALR_87012936: Depreciation on Capitalized Assets (Depn Simulation) Simulated depreciation on assets/asset classes and Projects (can be restricted to specific WBS elements).

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