Assets Accounting

ASSET ACCOUNTING CONFIGURATION Check Country Specific Settings -OA08 Path: IMG Financial Accounting Assets Accounting Organizational Structures Check Country Specific Settings In this step we will make various setting for organizational structures of assets accounting LVA low value assets AUC assets under construction Post net book value, capitalize Auc, w/o down payment

Copy Reference Chart of Dep. / Dep. Areas -EC08 Path: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Dep. / Dep. Areas In this step, we define our charts of depreciation. The chart of depreciation is a list of depreciation areas arranged according to business and legal requirements. The chart of depreciation enables we to manage all rules for the valuation of assets in a particular country or economic region. We can not create new COD, what can do is will copy the specified COD and make necessary changes as per our requirement

Specify Description Path: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Depreciation / Dep. Area In this step, we will rename the description of the chart of Depreciation

Copy Delete Depreciation Areas Path: IMG Financial Accounting Assets Accounting Organizational Structures Copy Reference Chart of Depreciation / Dep. Area.

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Assets Accounting In this activity we will add new depreciation area and delete depreciation areas not requited by us.

Assign COD to Co Code OAOB Path: IMG Financial Accounting Assets Accounting Organizational Structures Chart of Depreciation to Co Code In this activity will assign Company Code to COD. A COD can be assigned to more then one company code. Define Number Range Interval AS08 Path: IMG Financial Accounting Assets Accounting Organizational Structures

Assets Class Define Number Range Interval

In this step, we define the number ranges for assets classes of our company code for assigning the main asset number.

Specify Account Determination SPRO Path: IMG Financial Accounting Assets Accounting Organizational Structures

Assets Class Specify Account Determination

In this step, we define the account determinations for Asset Accounting (key and description). The key of an account determination must be stored in the asset class. In this way, the account determination links an asset master record to the general ledger accounts to be posted for an accounting transaction using the asset class. We specify the general ledger accounts to be posted for the individual accounting transactions in later implementation activities. We can specify various accounts for each depreciation area to be posted

Define Assets Class OAOA

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Assets Accounting Path: IMG Financial Accounting Assets Accounting Organizational Structures

Assets Class Define Assets Class

In this step, we will define the 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. We can see that it is possible to make finer distinctions at the level of the asset class than at the level of the general ledger accounts

Define How Depreciation Areas Post to General Ledger OADX Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Define how depreciation areas post to general ledger

In this step, we specify the depreciation areas that post their APC transactions and/or depreciation to the general ledger. The system can post the APC (Acquisitions Production Cost) transactions of one depreciation area to the general ledger online automatically. Usually this is the book depreciation area 01. We can post transactions from other depreciation areas to the general ledger automatically using periodic processing. (The exception to this rule is the depreciation areas for investment support shown on the liabilities side, which can also post online.) We always have to use periodic processing to post depreciation to the general ledger. 0 No values posted 1 Post assets in GL real-time 2 Post assets periodically to GL 3 Only depreciation posted

Assign G/L Accounts AO90 Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Assign G/L Accounts

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Assets Accounting In this step, we will determine the various balance sheet accounts and the depreciation accounts for Asset Accounting. Account assignment will be made Per COA / Per Account Determination / Per depreciation area

Assign input tax indicators for Non-Taxable Acquisitions OBCL Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Assign input tax indicators 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.

Specify Fin Stat Version for Asset Reporting - OAYN Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Specify Fin. Stat version for assets reporting

In this step, we determine, per depreciation area, which financial statement version the system is to use as a default. This default applies when the financial statement version is contained in the sort version used for a given report.

Specify document types for posting of dep. OA71 Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Post depreciation to the general ledger Specify document types for posting of dep.
In this processing step we determine the document type for each company code for posting depreciation. SAP supplies document type AF for depreciation posting.

Specify intervals and posting rule - OAYR Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Post depreciation to the general ledger Specify intervals and posting rule.

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Assets Accounting In this step, we define the posting rules for the depreciation areas that post depreciation values to Financial Accounting. We define the posting cycle (how often depreciation is posted) and the account assignment rules for the depreciation-posting run. 1.Specify how often the posting runs are to be carried out. 1 = monthly posting, 3 = Quarterly Posting , 6 = Semi Annual posting , 12 = Annual Posting 2. Specify whether, for depreciation areas that post depreciation to the general ledger, specify whether the system should use the catch-up method or smoothing. 3.Specify whether we want additional account assignment to cost centers or orders. The system then posts account assignment of the order or WBS elements in the given master record. If we specify both CO account assignments (order and project) for the depreciation-posting program, and both an order and a WBS element are entered in the asset master record, the system makes account assignment only to the order (no double CO account assignment).

Determine Depreciation areas in the assets class OAYZ Path: IMG Financial Accounting Assets Accounting Valuation Determine Depreciation areas in the assets class.

Specify Maximum Amount for low value assets + Assets Class OAY2 Path: IMG Financial Accounting Assets Accounting Valuation Amount Specification (Company Code / Chart of Depreciation) Specify Max. Amount for low value assets + Assets Class. In this step, determine the maximum amount for low-value assets (LVAs). We enter a maximum amount per company code or per depreciation area. The system checks this maximum amount during every acquisition posting, providing the corresponding LVA indicator is set in the asset class. In this activity we will specify maximum amount for each company code/depreciation area (1) for acquisition postings (2) for purchase orders (maximum LVA amount). Besides this we also specify how we want the system to carry out the LVA maximum amount check for the asset

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Assets Accounting class. Should the check be (1) a quantity check (when low-value assets are managed collectively on a single asset master record) (2) individual check (when low-value assets are managed individually)

Specify the rounding of net book value and / or depreciation OAYO Path: IMG Financial Accounting Assets Accounting Valuation Amount Specification (Company Code / Chart of Depreciation) Specify the rounding of net book value and / or depreciation In this step, we will define rounding specifications for net book values at the end of the year, and for automatically determined depreciation. These specifications are for each depreciation area and company code.

Determine Depreciation Areas OABN Path: IMG Financial Accounting Assets Accounting Depreciation Ordinary Depreciation Determine Depreciation Areas. In this step, we will determine the depreciation areas in which we want to manage ordinary depreciation. This specification means that this value type is allowed in the depreciation area (that is, the system does not issue an error message when we enter corresponding depreciation terms in the asset master record).

Define Base Method SPRO Path: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Calculation Method Define Base Methods. In this step, we will maintain base methods. Base methods are valid in all charts of depreciation. We assign base methods to depreciation keys.

Define Decline Balance Method

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Assets Accounting Path: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Calculation Method Define Decline Balance Method. In this step, we define declining-balance methods. We then assign them to depreciation keys.

Maintain Period Control Path: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Maintain Depreciation Key. The system determines the start or end of depreciation based on the asset value date of a transaction (of the acquisition or retirement) using the period control. The period control is therefore an important part of the depreciation key. We can enter a separate period control for each period control method of the depreciation key for the following transaction types: Acquisitions Subsequent acquisitions in later years Retirements Transfers In this step we can define new rules if the standard period controls are not sufficient for our installation. We define the calendar assignment for newly defined or copied period controls in a further step.

Maintain Depreciation Key - AFAMA Path: IMG Financial Accounting Assets Accounting Depreciation Valuation Method Depreciation Key Maintain Depreciation Key. In this step, we will 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. In this step we will carry out following activities

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Assets Accounting 1. Maintain additional depreciation keys and their descriptions in accordance with our requirements, if required 2. Assign calculation methods to the depreciation keys. Maintain any other necessary parameters. 3. Set the status of the depreciation keys to "active".

Specify Number Assignment Across Co Codes [AO11] Path: IMG Financial Accounting Assets Accounting Organizational Structures Specify number assignment across Company Code In the FI-AA module, we can assign the main asset number across company codes. Therefore, for every company code, we can determine from which (other) company code number assignment is to be carried out. In this step, we define a cross-company code assignment of the main asset number. If we do not want a cross-company code number assignment, we do not need to define any system settings here.

Create Screen Layout Rules Path: IMG Financial Accounting Assets Accounting Organizational Structures

Assets Class Create Screen Layout Rules

In this step, we create here 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. SAP provides default screen layout for various classes of assets.

Specify Posting Key for Asset Posting Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Specify Posting Key for Assets Posting

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Assets Accounting In this activity we define posting keys, which are used for automatic postings when posting to fixed asset accounts. 70 DR 75 CR for asset posting 40 DR 50 CR for GL a/c posting

Change FSV of the Asset GL a/cs Path: IMG Financial Accounting Assets Accounting Integration With General Ledger

Change FSV of the Assets GL A/cs

In the FI General Ledger system, we can control which fields are contained in the entry screens of posting transactions. We can also specify whether these fields are required entry fields (setting the field status). We need to make specifications of this type if we plan to use integrated posting of asset retirements (posted with customer). We must make sure that the indicator "asset retirement" and the field "asset" are defined as available for input. o Change FSV for posting keys DR 40,70 must have reversal CR 50,75 for GL & Assets

Specify dep areas for group assets Path: IMG Financial Accounting Assets Accounting Valuation Group Assets Specify Depreciation areas for group assets. In this step, we determine the depreciation areas that we also want to manage on group asset level. In these depreciation areas, it is then possible to make an assignment to a group asset. We make this assignment in the specifications for the depreciation area in the asset master record. When we post an acquisition to this kind of asset, the system duplicates the line items from this depreciation area on the given group asset.

Specify asset classes for group assets Path: IMG Financial Accounting Assets Accounting Valuation Group Assets Specify assets classes for group assets

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Assets Accounting It is basically possible to use all asset classes for creating group assets. However, under certain circumstances, we need to set aside particular asset classes for use in conjunction with group assets. These asset classes are then reserved solely for group assets, and are not allowed to be used for normal assets..

Define the transaction types for acquisition Path: IMG Financial Accounting Assets Accounting Transaction Acquisition Define Transaction Types for Acquisition. This step is optional. In this step, we define the transaction types for asset acquisitions. We can also specify that for certain transaction types, only certain depreciation areas will be proposed for posting. The system then creates a popup window in the posting transaction, showing the depreciation areas that can be posted. If we specify that all depreciation areas should always be posted, the system suppresses the popup window. SAP provides transaction types for asset acquisitions. We can use these transaction types without making any changes to them.

Assign Accounts for Assets Acquisition Path: IMG Financial Accounting Assets Accounting Transaction Acquisition Assign Accounts. In this activity, we will define general ledger accounts for asset acquisitions.

Define Transaction Types for Retirement Path: IMG Financial Accounting Assets Accounting Transaction Retirement Define Transaction Types for retirement In this step, we will define transaction types for posting fixed asset retirements. We can also specify that certain transaction types should only be suggested for posting to certain depreciation areas. In the posting transaction, the system generates a pop-up with the depreciation areas to be posted to. If specify that all areas should always be posted to, the pop-up does not appear.

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Assets Accounting

Define Posting Variants Path: IMG Financial Accounting Assets Accounting Transaction Retirement Gain / Loss Posting Define Posting Variants In this step, we define the bookkeeping processing of gain/loss for fixed asset retirements per depreciation area: Variant 0: Post gain/loss to a P+L account Variant 1: Post gain/loss to the value adjustment account on the liabilities side Variant 2: Post the entire sales revenue (no gain/loss determination) on the liabilities side Variant 3: Post gain/loss to a special fixed asset

END USER STEPS ACQUISITION F-90 with vendor F-91 clearing offsetting entry ABZON acq/with auto offsetting entry. [new asset, master data] RETIREMENT WITH REVENUE F-92 with customer [01 DR select customer TT 260 Posting key 50 CR a/c 825000 TT 260 ] Click asset retirement curr yr Ret & enter on screen to go to next screen, complete asset no & enter text. Header doc display for a/c entries ABAON asset sale w/o customer ASSET MASTER AS01 create Asset AW01N explorer to check posting in Dep posted / planned [green button posted period]

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Assets Accounting S_ALR_87012347 doc extract to check entries ABST a/c reco for AA/GL diff SAP PERIODIC PROCESSING-DEPRECIATION AFAB execute - has to be executed period by period Choose period, go top program & execute in background F9 LP01 Click immediate Save [RABUCH00_FIU] System/Services/jJobOverview/execute [SM37] System/Services/Batch input/sessions/process. IMPORTANT POINTS ASSETS ACCOUNTING Chart of depreciation are usually country specific and defined independently of the other organizational units. A chat of depreciation can be used by all company code of a particular country. Assets can be managed in parallel upto 99 depreciation areas. A depreciation area is always assigned to only one chart of depreciation. Company code is assigned to chart of depreciation not the chart of account. The assignment of company code to chart of account is independent from the assignment to the chart of depreciation. This means that several company codes can use the same chart of accounts although they have different chart of depreciation.

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Assets Accounting The account assignment is control by means of assets class in assets accounting. You have to specify an account determination in each assets class. In the account determination, we will specify the G/L accounts in which automatic posting takes place for different transaction Assignment of assets to company code. We have to enter a company code, when we create a assets. This ensures that each assets is always uniquely assigned to a company code. If we enable business area balance sheet at the time of G/L maintenance, then we need to assign assets to business area. The plant has no assets accounting relevance, but it can be used as a short and selection criteria for report. Plant can be a asset in assets master data. Assets in assets accounting is assigned to exactly one cost center in its master maintenance. The cost center assignment of a fixed assets can be set at the begin of a specific day. If this data change over the course of time , the system distribute depreciation and interest according to the appropriate period to the different cost center, where by APC are always allocated to the cost center valid at the end of the depreciation period. A Cost center can also be assigned to a business area as a assets can. In assets master maintenance, therefore the system ensures that the business area of the cost center matches the business area of the assets. Assets can be assigned to profit center indirectly by means of the cost center.

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Assets Accounting

If assets are assigned to more then one cost center, then cost can be distributed by using a distribution cost center. Assets can be structured at several levels in the system. A. Balace sheet Level, B. Classification Level, C. Assets related levels. We can assign any number of chart of account to assets class. We can create screen layout control at assets class level, that carries certain values for assets master. Creation of assets class is a customizing activity. Account determination is the most important function of the assets class. Several assets class may use same account determination. Changes in the master data in the assets class only have an affect on the assets created after the changes made. The system does not automatically carry out the changes for assets that already exist. For this purpose, you should use the mass change procedure. Assets class controls various important information of the assets. a. Account determination b. Depreciation terms line Depreciation Key , Useful life of assets class c. Screen layouts. d. Fields attributes e. No assignment.

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Assets Accounting Deactivation of depreciation area can be done at assets class level or assets level. Assets under construction can be managed in the system as individual master record, just as we do completed assets. We can also use collective management of several assets under construction on one master records. We can distribute to the proper assets when the assets under construction completed by using either a. Line item settlement. b. Simple transfer to other assets master record. While setting deprecation area at company code level we are setting values for low value assets. Low value assets can be managed either A. individual check or individual management B. Quantity check collective management There are two different methods of handling of leased assets. A. capitalize the leased assets and charge depreciation as on ordinary assets B Treat periodic payment as rent and charge to P & L accounts. If assets consists of several component assets, it may make sense to monitor the individual sub assets separately. For complex assets there is often a need for uniform depreciation of the entire assets in the book depreciation and tax depreciation areas, where as for cost accounting purpose the sub assets should be depreciated separately. Reasons for managing component assets as sub numbers. a. The development values for components assets is separate for each sub number b. The sub numbers can have different cost accounting assignment

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Assets Accounting c. The assets can be divided along with technical lines. d. Investment support can be represented as negative sub number e. If it is necessary to manage subsequent acquisition separately in order to be able to monitor their depreciation and book value separately. We must manage this acquisition on independent sub numbers. By means of the screen layout control for the assets class we can specify, whether the depreciation term can be maintained at sub numbers level. The currency in the master depreciation area has to be has to be identical to the local currency in company code. We can manage other depreciation areas in any currency we like. It is recommended that we should define all the depreciation areas you might need before the production start off of the system. However if a special need arises , it is possible to define a new depreciation area after production start up and to add assets to this depreciation. We can also delete depreciation areas. The depreciation area we want to delete must meet the following requirements. o It should not be the master deprecation area 01 o There can be no assets values in the depreciation area. o The area can not be a reference area, we should change the destination of the areas that are dependent on the depreciation area, we want to delete. o The area can not be used in the calculation formula for a derived depreciation area, if it is used in a calculation formula. We need to change the calculation formula for the derived depreciation area.

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Assets Accounting

When we post with account assignment to an assets, the system determines the G/L accounts that is posted based on four things. A Chart of account valid in the company code, B. the depreciation area that is to be posted , C. The account allocation key and D. the transaction type. If we use assets accounting in conjunction with cost accounting and / or FI general ledger, the following additional account assignment can possible, depending on the business transaction to be posted. o Business Area o Cost center / Internal Order o Profit center o Fund center If some one has entered additional account assignment for both an order and a cost center at the same time, then order take precedence. However the order does not take precedence if it is a statistical order. If the order is statistical, then account assignment to both the statistical order and cost center is possible. It is only possible to enter one cost center in the assets master record. The only way to distribute depreciation and interest to different cost centers is to use settlement with in cost accounting. The cost center in the master record then serves the function of distribution cost center. The advantage of this approach is that report shows only the distribution cost center that is actually debited.

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Assets Accounting We can specify that the posting values from one depreciation area can updated automatically online to the general ledger accounts. We can updates other depreciation areas to the general ledger using periodic processing. Depreciation key contain all central data for the calculation of planned annual depreciation. We can enter a depreciation area in the assets master records or at assets class level We can enter a screen layout rule in one of the two places either in the part of the assets class valid for all clients or in the part of the assets class valid for the chart of depreciation. The depreciation key contains all control data for the calculation of planned annual depreciation. We can enter a depreciation area in the assets master. The system uses calculation methods for the calculation of depreciation and imputed interest. We assign calculation methods to depreciation keys. The calculation methods provide the parameters for depreciation calculation program. The assets main no has 12 alphanumeric characters. The assets control number assignment. We specify the number range for an assets class in the assets class. In this way we ensure that number assignment is uniform for the assets class. We can choose between external and internal number assignment by specifying a correspondingly defined number range. Several assets class can use same number range. Assets sub number four numeric charters. The 1st sub number is assigned at the same line as the main number and is noted as a main assets master record. We dont have

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Assets Accounting to define number range for the sub number assignment. We will specify in the assets class whether sub number is assigned externally or internally. o In the case of internal assignment the sub nos. are assigned consecutively for each main number starting with 000 o When we use external assignment , we can use our own method for assigning nos.

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