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APC is acquisition and production cost.

As a result of the integration in the R/3 System, Asset Accounting (FI-AA) trans
fers data directly to and from other R/3 components. For example, it is possible
to post from the Materials Management (MM) component directly to FI-AA. When an
asset is purchased or produced in-house, you can directly post the invoice rece
ipt or goods receipt, or the withdrawal from the warehouse, to assets in the Ass
et Accounting component. At the same time, you can pass on depreciation and inte
rest directly to the Financial Accounting (FI) and Controlling (CO) components.
From the Plant Maintenance (PM) component, you can settle maintenance activities
that require capitalization to assets
If you post to an asset when entering a purchase requisition or an outline agree
ment, the system checks, with reference to the planned delivery date, whether th
e fixed asset actually exists and whether you can post to it. The same checks ar
e carried out if you post to a fixed asset when entering a purchase order. Moreo
ver, the system ensures that you do not exceed the upper limit for low-value ass
ets. You can still change the asset, for which account assignment is to be perfo
rmed, until receipt of the first goods or invoice for a purchase order.
If you want to carry out account assignment to assets when creating purchase ord
ers, purchase requisitions and outline agreements, the account entered in Financ
ial Accounting for "Acquisition and production costs" must be assigned to a fiel
d status group that allows entries in the field groups "asset number/sub-number,
" "transaction type," and "quantity."

APC = Acquisition and production costs

This is the valuation of an asset in the Balance sheet.In the case of external a
cquisition we incur certain costs which include all expenses for the acquisition
including incidental acquisition costs less reduction to the purchase price.
You might ask what are incidental costs :
eg are Freight charges,
Forwarding costs,
commissions etc
Reduction in purchase price could be
Cash Discounts,
Subsidies granted by third party etc.,
There might be in house acquisition costs which include production costs
eg Direct and Indirect costs which includes materials handling overhead
Direct Labour costs which includes payroll OH
Special production costs

Question: Why and How we Revalue the Fixed Assets in SAP?


Purpose of Revaluation
A revaluation of fixed assets is a technique that may be required to accurately
describe the true value of the capital goods a business owns. The purpose of a r
evaluation is to bring into the books the fair market value of fixed assets. Thi
s may be helpful in order to decide whether to invest in another business. If a
company wants to sell one of its assets, it is revalued in preparation for sales
Procedure for Revalue the Fixed Assets:
1. Go to OABW and check both revalue APC and depreciation in the depreciation ar
ea where you want to post. This would help in identifying the area where the rev
aluation will have to be posted.
2. Go to OAYR and select the company code. Then click on the posting rules.
In the book depreciation area, go to other posting settings. Check post revaluat
ion. This setting is required for posting the revaluation amount.
3. Go to AO90 and Create a revaluation APC as well as clearing account. The reva
luation APC has to be a recon account and the revaluation clearing a P&L. Simila
rly create for depreciation as accumulated and a normal P & L.
4. Now go to ABAW, and select the asset to be revalued. Put the transaction type
as 800. Press enter.
In the next screen give an asset value date, amount to be posted as revaluation.
Now click save. An asset accounting document will be generated.
This revaluation amount will not be posted automatically. Once depreciation run
takes place then only the amount gets posted to the GL account. Hence it is advi
sable to run at the year end.
Also the depreciation run has to be for the first time in order to get the reval
ued amount to be posted. Otherwise, the amount will not be posted in the GL acco
Run the Depreciation for a period in AFAB. If you do a test run you would be abl
e to see the revaluation amount that has to be posted and the same would be refl
ected in the planned values in asset explorer (AW01N).
Same won t be reflected in the posted values unless the depreciation run was not a
test run.
Once the depreciation run is done, revaluation account APC will be debited and t
he revaluation clearing account will be credited.
This revaluation account will then be transferred to P & L account by passing a
manual entry.